Projected Growth in Brazil and Mexico Lowered
Via Bloomberg Business: Latin America’s Two Largest Economies GDP Growth Forecasts Cut
Mexico’s economy will grow 2.96 percent this year, according to the median estimate in the central bank’s monthly survey published today, compared with the 3.35 percent estimated in the previous poll. Brazil economists cut their growth forecast for a third week to 2.77 percent, according to the central bank’s weekly survey of about 100 analysts.
Growth in the two economies that make up almost two thirds of Latin America’s gross domestic product slowed in the first quarter as exports weakened and domestic demand remained sluggish. Mexico’s central bank will probably cut interest rates for a second time this year, while Brazil is raising rates as inflation accelerates, said Marcelo Salomon, the co-head of Latin America economics at Barclays Plc.
Still, since Mexico only grew by 0.8% in the first quarter, an overall growth rate of almost 3% is not bad. The long-term projections are healthy, albeit unspectacular:
Mexico’s economy will expand 3.98 percent next year, according to the survey released today, while Brazil is forecast to grow 3.4 percent.
Of course, projections are often not worth the electrons they are written with.