Nov. 8 (Bloomberg) -- Mexican development bank Nacional Financiera SNC’s loan growth to private companies will slow by almost half next year as a U.S. economic slowdown cuts demand for exports from the Latin American country, Hector Rangel, the bank’s head, said today.
Nafinsa’s outstanding loans will increase 10 percent to 12 percent in 2012, compared with this year’s expected growth of 20 percent to 200 billion pesos ($15 billion), Rangel said in an interview in London.
“We’re probably going to see a slower growth in demand for loans than we saw in 2010 and 2011 because the economy is slowing down a bit,” said Rangel. “We are very linked to the U.S. in the manufacturing sector so whatever happens to the U.S. is transmitted to Mexico.”
U.S. economic growth will slow to 1.7 percent this year from 3 percent in 2010, according to the median estimate of 80 analysts surveyed by Bloomberg. Mexico’s expansion will slow to 4 percent this year from 5.4 percent in 2010, the Finance Ministry said Sept. 8.
Sales to the U.S. accounted for about 78 percent of Mexico’s exports so far this year, compared with 80 percent in 2010, according to Carlos Guzman, head of ProMexico, the country’s investment promotions agency. Total exports will probably exceed $300 billion this year, Guzman said in an interview while he and Rangel were attending a business event in London.
--Editors: Richard Jarvie, Harry Maurer
To contact the reporter on this story: Karen Eeuwens in London at email@example.com.
To contact the editor responsible for this story: Joshua Goodman at firstname.lastname@example.org