UTEP Report predicts sluggish economic outlook for Mexico in 2017By 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.
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.
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.
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.
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