Growth forecast revised again.

MEXICO CITY --The Banco de Mexico revised down its growth forecasts for 2001 yet again on Wednesday, to 0.77% of GDP, against earlier hopes of a 1.7% expansion, admitting that the business climate and confidence levels were continue to show weakness. Even this revised figure depends upon a rebound in growth in the fourth quarter, which is looking less and less likely as the global economy continues to slow. Inflation, on the other hand is expected to beat expectations, coming in well under the central bank's 6.5% forecast, however, the success in controlling price pressures has very much been at the expense of growth. Despite the slowdown it is unlikely that the government will be willing to adjust its fiscal deficit target of 0.65% of GDP this year.