• LOWER: The global economics research team Bank of America Merrill Lynch is forecasting that Mexico’s economic contraction will continue in 2020, saying that instead of it expanding by a previous estimate of 0.5%, the Mexican economy will now contract 0.1%.
• FACTORS: Despite the López Obrador Administration coming out on Wednesday, reassuring the public that the Mexican economy had enough protections, the volatility derived from the coronavirus outbreak, the lower oil prices, and the slowing prospects of the US economy fared badly for Mexico.
• PERSPECTIVE: Just last week, the Organization for Economic Cooperation and Development (OECD) had warned that Mexico’s exposure to the global coronavirus effect would mean lowering its 2020 GDP forecast for the country from 1.2% expected in November to 0.7% now.
• EXPECTATIONS: The head of sovereign ratings for the Americas at S&P Global Ratings, Joydeep Mukherji, reminded this week that the expectation was to see Mexico growing this year. Mukherji questioned if one could see the Mexican government restoring private sector confidence.
