Analysts estimate that the Mexican economy will contract 8.80% this year

[Shick]

Analysts estimate that the Mexican economy will contract 8.80% this year before recovering next year.

Mexico's central bank revealed that Financial analysts lowered Mexico's economic growth forecast this year to -8.80% in June from -7.99% in May.

The number is the fourth forecast of private economists since Mexico reported the discovery of the Covid-19 infection. The first on February 28, leading to a lockdown and resulting economic disruption.

For 2021, Mexico's GDP is expected to grow by 2.8%, higher than previously projected at 2.20%. These forecasts are based on a survey of 35 financial institutions during the period 24-29. June by the Central Bank of Mexico

In the year 2019, Mexico's GDP Which has the second largest economy in Latin America, after Brazil shrank by 0.3%, the first contract in ten years

The inflation forecast for this year increased from 3.07% to 3.34%, while the 2021 inflation forecast for the year increased from 3.45% to 3.51%.

Mexico's inflation in 2019 stood at 2.83%, the lowest level since 2016, and it is still the 2nd lowest record since the inflation data was collected.

While the Central Bank of Mexico targets inflation at 3%, allowing it to increase or fall no more than 1%

The exchange rate for the Mexican peso is expected to be 22.66 pesos per US dollar at the end of 2020, lower than expected last month at 23.02 pesos per US dollar.

The Xinhua News Agency reported that The peso currency fluctuated with increases in March and April. Due to the fluctuating world oil market and the outbreak of Covid-19 That affects the world economy