Experts from the private sector consulted by the Mexico’s Central Bank (Banxico) set bull forecasts for inflation, exchange rates and funding rates for this year as well as for next year. Economic growth for Mexico in 2017 was set within a bearish perspective.
According to polls on expectations from private-sector economic specialists carried out in November by Banxico, experts assessed inflation expectations soaring from 3.27 and 3.6 per cent to 3.41 and 4.0 for the end of 2016 and next year.
In addition, estimates for the country’s economic expansion in 2016 and 2017 was modified to 2.08 and 1.72 per cent instead for 2.07 and 2.26 per cent.
Likewise, the expected level for interbank rates on Dec. 2016 and 2017 was estimated on 5.60 and 6.38 points by Nov. compared to 5.02 and 5.55 per cent previously calculated on October.
Estimates on exchange rates for the year’s end and for next year changed to 20.78 and 20.89 pesos per dollar from the expectations set in October which ranged from 18.69 and 18.66 pesos per dollar.
Due to the decline of economic expectations, more and more economists consider this a bad time for investment since the overall climate for business will worsen over the next six months. Experts agree that the Mexican economy will be worse than a year ago.
Also, they pointed out that the greatest risks to expectations are market weakness, world economy, and international financial stability.
