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  • More Decline in Economic Growth Forcasted for Mexico

  • The GDP's growth rate is forecasted to be around 2 percent at the end of the year

, photo: Wikimedia/Thelma Datter

15 of August 2016 16:15:17

According to the Business Coordination Council (CCE), the Mexico's economic growth continues to decelerate and the second half of the year will again see low growth rates. The GDP growth rate is forecasted to be around 2 percent at the end of the year, and the CCE added that the continuation of these conditions into 2017 should be avoided at all costs.Juan Pablo Castañon, president of the CCE, said that this less-than-optimistic view of the short to medium-term future is due to external factors, but also internal ones.“The symptoms of economic weakness continue to build upon themselves, showing signs of stagnation caused by fear of high rates of inflation. The price of many services is obviously not immune to the gross devaluation of the peso, which can be seen in the rise in price of gasoline, light and other services," he said. “As we continue to watch the decline in both public and private investments, we must understand the implications of restrictive economic policies at this moment, and consider they will not come without negative effects to growth."

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