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.