Mexico City. Citibanamex announced that it has improved its forecast for GDP growth this year. The estimate went from 4.2 to 4.7 percent.
In a weekly document, the financial institution specified that the new forecasts are due to the fact that the panorama of national activity has better prospects, mainly due to external problems.
“The adjustment is derived from the expected impacts on the Mexican economy due to the greater prospects for expansion of the United States economy,” he said.
Cetepanamex indicated that with the approval of the new fiscal stimulus package in the United States, GDP growth in this country this year is expected to reach 6.1 percent.
“We expect industrial production in the United States to increase by 6 percent in 2021 and 3 percent in 2022, which will contribute to expanding Mexican exports, with growth of 21.3 percent and 6.9 percent, respectively,” he said.
He considered that the expected increases in domestic demand will be modest, and although some elements will provide greater support, such as transfers, private consumption will grow by 4.3 percent this year, while total fixed investment will grow by 4.5 percent.
It also improved its forecast for 2022. Activity performance expectations increased from 2.5 to 2.7 percent.