Mexican economy will grow less in 2019 due to U.S. slowdown: ECLAC

Economic Commission for Latin America and the Caribbean (ECLAC) forecasts that by 2019 the Mexican economy will grow at a slower rate to 2.1% at the end of the year, said Ramon Padilla, head of economic development of ECLAC.

In a press conference, the analyst of the international organization explained that this lower growth is due to the fact that there will be less expansion of the U.S. economy, which is expected to be at 2.5% for this year, as well as a slowdown of the global economy estimated to be 3.0% during the same period.

Hugo Beteta, sub-regional director of ECLAC in Mexico, stressed that at the global level there are emerging risks arising from trade tensions between China and the United States and the inability to find a way out of the brexit, as well as financial fragility and monetary policy adjustments.

“Protectionism, the evolution of the global economy that has slowed down and the increase in global debt are the threats to Mexico’s growth,” said the analyst.

Another estimate is that inflation in Mexico will be at 3.9% at the end of 2019, while the Bank of Mexico (Banxico) estimates 3.4% for the same period.