• DOWNGRADE: The International Monetary Fund (IMF) revised downward Mexico’s economic growth forecast for 2020 to 1% (a 0.3% decrease with respect to October). Along with Chile, Mexico is cited as one of the concerns for dragging down Latin America’s outlook.
• FUTURE: Moreover, the IMF predicts that Mexico’s growth will recover somewhat in 2021 but only reaching 1.6% growth, again a 0.3% downgrade. Right after his electoral victory in July 2018, now President Andrés Manuel López Obrador said Mexico would reach 4% growth under his watch.
• INVESTMENT: “In Latin America….the revisions are due to a downgrade to Mexico’s growth prospects in 2020-21, including due to continued weak investment”, the IMF said in its report. The Mexican economy’s growth for 2019 was expected to hover around 0%.
• CURRENCY: Despite the IMF forecasts, the Mexican peso (MXN) had its best day in 17 months gaining ground vis-a-vis the US dollar (USD) at MXN 18.97 per USD 1. At the same time the Mexican Stock Exchange (BMV) also had the best daily gains of the past 15 months.
