UTEP Report predicts sluggish economic outlook for Mexico in 2017

By Elliot Bullman

Mexico's economy is projected to slow considerably in 2017 dueto uncertainties about U.S.trade policies from the incoming Trump administration, according to predictions from a panel of economic experts from banks, universitiesand other institutions in the United States and Mexico, a new report shows.

slow economy

The Mexican economy is projected to grow 1.4 percent in 2017, compared withan estimated 2 percent growth in 2016, according to the "Mexico Consensus Economic Forecast" published in December by the University of Texas at El PasoDepartment of Economics and Finance.

Towards the end of November 2016 Mexico's central bank cut its 2017 economic growth outlook to between 1.5-2.5 percent versus a previous 2.0-3.0 percent because of President-elect Donald Trump-induced uncertainties concerning Mexican exports and foreign investment in the country.

slow economy 2

Economic experts from two of the nine institutions in the UTEP report declined to make a 2017 economic forecast and one economist from Wells Fargo Bank predicted Mexico's economy will shrink in 2017.

"Investment growth in Mexico is likely to suffer at least a temporary setback due, in part, to uncertainty" tied to Trump's trade policies, the report states.

slow economy 3

The experts projectthe Mexican peso will stabilize at 20.7 pesos per dollar — near its current exchange rate. Even with the weak peso, consumer spending within Mexico is expected to show healthy growth, which is expected to help the Mexicaneconomy in 2017, according to the consensusreport.

RELATED NEWS

  • Mexican entrepreneurship project receives award in FranceMexican entrepreneurship project receives award in France
  • MexicoMexico's foreign minister and business leaders express outrage over ‘inhumane’ US immigration policy
  • The Dow Jones industrial average turned negative as global trade war fears mountThe Dow Jones industrial average turned negative as global trade war fears mount
  • Canada legalizes recreational cannabis useCanada legalizes recreational cannabis use
  • EU to retaliate against US with counter-tariffs on FridayEU to retaliate against US with counter-tariffs on Friday
  • Mexican national team football shirt is best  seller in the United StatesMexican national team football shirt is best seller in the United States
  • Scorpion catching is a dangerous trade that allows Durango’s locals to survive.Scorpion catching is a dangerous trade that allows Durango’s locals to survive.
  • Rafael Márquez , is only the third player in history to achieve the feat of playing in 5 world cupsRafael Márquez , is only the third player in history to achieve the feat of playing in 5 world cups
  • It’s not just in football that Mexico is superior to GermanyIt’s not just in football that Mexico is superior to Germany
  • First ladies speak out on Trump separation policyFirst ladies speak out on Trump separation policy
  • Women sustain half of Mexico’s economy but earn crippling wagesWomen sustain half of Mexico’s economy but earn crippling wages
  • DunkinDunkin' Donuts to reach 100 stores in Mexico thanks to millennials
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2018