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Sunday 21 of July 2024

Banxico: Mexican Economy Could Face Adverse Environment


Agustín Carstens Carstens, head of Mexico's Central Bank (Banxico),photo: Notimex/Guillermo Granados
Agustín Carstens Carstens, head of Mexico's Central Bank (Banxico),photo: Notimex/Guillermo Granados
According to Banxico’s prediction, inflation will be under 3 percent over the next few months

Mexico’s Central Bank (Banxico) said that the Mexican economy could face an adverse environment during the coming months. This situation could be caused by the possibility that the slowdown in global growth, in particular industrial activity in the United States, can cause the financing conditions to become more stringent, which could have adverse consequences on investment plans and growth.

Agustín Carstens Carstens, head of Banxico, presented the 2016 January to March Quaterly Report to the Standing Committee of Congress, in which inflation, economic developments and the behavior of economic indicators were analyzed.

In its report, Banxico states that the Mexican economy is prepared to face this adverse environment, thanks to the tax authorities orchestrating a package of measures in a timely manner, in order to strengthen macroeconomic fundamentals.

Among the actions undertaken to help ensure macroeconomic stability are public spending adjustments, along with the use of Banxico’s operating surplus, to improve the financial position of the buyback of existing debt of the federal government and the reduction of the amount of loans during 2016, which will help the country to improve its finances.

According to Banxico’s prediction, inflation will be under 3 percent over the next few months. In addition, the gross domestic product will grow between 2 and 3 percent during 2016 and between 2.3 and 3.3 during 2017.