Tuesday, 22nd June, 2021
Tuesday, 22nd June, 2021

Mexico central bank upgrades growth outlook

Mexico’s pandemic-hit economy is expected to grow by 6.0 percent this year, the central bank said Wednesday, upgrading its outlook for the second time since March.

Previously the Bank of Mexico had predicted growth of 4.8 percent for Latin America’s second-largest economy in 2021.

The brighter outlook reflects strong external demand, mainly from the United States, as well as an easing of the pandemic in Mexico, one of the countries worst affected by the coronavirus.

The Mexican economy shrank 8.5 percent in 2020, according to official figures, in the worst slump since the Great Depression some nine decades ago.

The central bank said that this year’s growth could miss or exceed its central forecast within a range of 5.0 to 7.0 percent depending on factors such as the pace of Mexico’s coronavirus vaccination program.

The country’s official Covid-19 death toll of more than 227,000 is the fourth highest in the world.

But infections and fatalities have been trending lower for several months, leading to an easing of lockdown measures.

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