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IMEF forecasts slower economic growth in Mexico

The Mexican economy is expected to grow at a less dynamic pace in the second half of 2022 as the manufacturing sector loses strength in line with the global trend, the Mexican Institute of Financial Professionals (IMEF) said Monday.

IMEF’s manufacturing indicator registered a 0.6-point increase in September from August to 50.1 units, returning slightly to the 50-point range.

Mexico City. (Photo internet reproduction)
Mexico City. (Photo internet reproduction)

“The results of the manufacturing indicator are clear: the manufacturing sector has entered a period of slower growth, in line with the global trend,” the IMEF said in its monthly report.

“In other economies, the adjustment has been stronger, suggesting that the relative performance of the industry is favorable,” it added.

The report said that the IMEF’s non-manufacturing indicator, which essentially refers to the service sector, declined 0.6 points to 50.9 units in September.

According to IMEF, the results of both indicators in the last three months suggest a continuation of Mexican economic growth but with a slower pace in the second half of 2022.

Mexico’s gross domestic product (GDP) rose 4.8 percent in 2021 after plunging 8.2 percent in 2020, the worst performance since the 1930s due to the new coronavirus.

Private analysts surveyed by Mexico’s central bank (Banxico) forecast economic growth of 1.9 percent by 2022.

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