Citibanamex increases to 1.5% GDP growth forecast for Mexico in 2022

Mexico.- The financial group Citibanamex announced that it increased its growth estimate for the Mexican economy for the current year, derived from the recovery that the labor market and consumption indices have registered in recent months.

In this sense, the financial institution made it public knowledge that it foresees that by 2022 the Gross domestic product (GDP) of the Mexican Republic 1.5% increase and not 1.3% as previously calculated.

In an economic report, Citibanamex explained that the employment and consumption of citizenship Mexican have presented a better performance in relation to what was expected months before.

The subsidiary bank of the US company pointed out that, despite the fact that a slowdown in economic activity in the national territory is contemplated for this year, the GDP is expected to have an increase of 1.5%.

“Although we anticipate a slowdown in activity for the rest of the year, particularly for exports, we now estimate that GDP will grow 1.5 percent in 2022,” said the financial group’s economic studies area.

Meanwhile, for 2023, Citibanamex stressed that, due to the fact that a lower growth of world GDP is expected for the following year, coupled with the effects that the rises in the interest rates of the Central Banks bring, the estimate lowered from 2 % to 1.8% of GDP.

Likewise, Citibanamex indicated that they continue to maintain that, at the end of this 2022, the national inflation is placed at 6.7%while by 2023 it manages to drop to 4%, in the context of lower national growth.

“We continue to anticipate inflation at the end of 2022 at 6.7 percent and for 2023 at 4 percent, 0.2 percentage points less than before, due to the lower growth environment,” he said.

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Meanwhile, as regards the reference interest rate of the Bank of Mexico (Banxico), the financial institution forecasts that it will end 2022 at a level from 9.25%while by 2023 it could decrease to 8.5%, only if it manages to contain the advance of inflation in the Mexican Republic.

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