Bloomberg News

Mexico Economists Boost GDP Estimate to 3.62% for This Year

May 02, 2012

Mexico economists expect the country’s gross domestic product to expand 3.62 percent this year, the highest forecast since July, according to the central bank’s monthly economic survey for April.

Economists and consulting firms had forecast growth of 3.43 percent in March and 4.09 percent in July. Inflation will end this year at 3.68 percent, the lowest estimate since the 3.68 percent projected in November, the survey showed.

Consumption and investment by private industry will drive growth this year, rising 4.02 percent and 6.25 percent respectively, analysts forecast. That compares with the March estimates of 3.76 percent and 5.30 percent. Mexico’s economy expanded about 4 percent in the first quarter of the year, the Finance Ministry said April 30 in its monthly budget report.

The increase in domestic consumption and investment was supported by an expansion of formal employment and lending, the Finance Ministry said in the e-mailed statement.

Core inflation will finish 2012 at 3.48 percent, the lowest forecast since January, according to today’s central bank survey.

Economists estimated growth of 3.50 percent for 2013, the same forecast as the March survey, the report showed.

The peso weakened 0.4 percent to 12.9610 per dollar at 10:57 a.m. Mexico City time from 12.9162.

To contact the reporter on this story: Jose Enrique Arrioja in Mexico City at jarrioja@bloomberg.net.

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net.


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