Mexican economy 'shines' in Latin America: UBSBy Elliot Bullman
An economist at Swiss bank UBS said that Latin American economies are slow to grow, with the exception of Mexico; However, it is the only country in Latin America where inflation is well above the target.
Growth in Latin American economies this year has been slower than expected, with the exception of Mexico, which has posted better growth rates than economists anticipated.
According to Rafael de la Fuente, an economist at Swiss bank UBS, the recession in Brazil and Argentina has taken longer than expected, while growth has also disappointed in the Andean region.
According to the economist, the only country where today's growth is stronger than the bank predicted is Mexico, which seems to be leaving behind the uncertainty of US-related policies and seeing a more balanced growth profile.
UBS believes that the external adjustment of the region at the end of the commodity supercycle is over. However, and again, without Mexico, this has not translated into a significant recovery of volume exports in the region despite a better tone for the world economy.
As for inflation and the monetary policy of the Bank of Mexico, UBS indicated that Mexico is the only country in Latin America that inflation is well above the target and continues to rise. However, the economist believes that inflation is likely to reach a turning point and fall back quickly next year, opening up the possibility of monetary easing already in the first half of 2018.
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