Mexico cuts 2015 growth forecast

August 20, 2015

MEXICO CITY – Mexico again slashed its 2015 economic growth forecast Thursday after its expansion in the second quarter came in at a sluggish 0.5 percent.

Latin America’s second-largest economy will grow between 2 and 2.8 percent this year, the Finance Ministry predicted, lowering its previous forecast of 2.2 to 3.2 percent.

The earlier prediction was itself revised down by one percentage point in May after weak first-quarter growth of 0.4 percent.

Mexico’s Central Bank last week cut its own economic growth forecast for 2015 to 1.7 to 2.5 percent, down from 2 to 3 percent.

The country has been hit hard by falling oil prices, complicating President Enrique Peña Nieto’s ambitious reforms of the oil sector.

The business community is also nervously watching the Mexican peso’s slide — down more than 20 percent against the dollar in the past year — and U.S. moves to raise interest rates, which will put more downward pressure on the peso and cause investors to pull money out of emerging markets.

Mexico’s economy grew 2.1 percent last year, falling well short of the government’s initial forecast.

You may be interested

New country club launches reforestation program
Santa Ana
73 views
Santa Ana
73 views

New country club launches reforestation program

The Tico Times - October 20, 2017

Those who live in the hustle and bustle of Costa Rica's cities may associate reforestation and biological connectivity with the…

A reader’s glimpse of Monteverde recovery
Photos & Video
6219 views
Photos & Video
6219 views

A reader’s glimpse of Monteverde recovery

Katherine Stanley - October 19, 2017

Tico Times reader Margaret Burton wrote to us from the United States to share this photo taken by her brother-in-law Michael…

President Solís recovers from successful prostate operation
Costa Rica
830 views
Costa Rica
830 views

President Solís recovers from successful prostate operation

Katherine Stanley - October 18, 2017

President Luis Guillermo Solís took a medical leave to undergo prostate surgery Wednesday after postponing the procedure last week to…