Mexican Government, Banxico Concur Over 6 Percent GrowthBy Emilio Aristegui | Fri, 08/27/2021 - 14:29
Banxico’s trimestral report indicates that the majority of the governing board believes that “The expectations of general and underlying inflation for the closing of 2021 and 2022 increased again.” However, other members of the board of directors believe that expectations remain the same.
Banxico published a trimestral report stating that “All (its governing board) stressed that the economic recovery continued during the second trimester.” The vaccination process has enhanced Mexico’s economic recovery, reads the report, as the country is starting to show signs of economic growth this trimester. Banxico also highlighted “the stability of the peso’s price and its better performance compared to other emerging economies.”
Arturo Herrera, Minister of Finance, insisted that prices will “decline once the effect of meteorological phenomena such as La Niña on agricultural prices is overcome, and the demand for certain household products is normalized.” There have also been talks between Mexico and the US about the increase in prices globally, as both countries continue to debate as part of a global discussion.
Global inflation seems to be the main antagonist as Mexico seeks economic recovery, Banxico’s board of directors believes that “headline inflation and the effects on supply chains in the production processes of various goods have pressured general and underlying inflation.”
After PROFECO announced that the price of LP Gas should “decrease by up to 10 percent,” inflation slowed down, as Banxico highlighted in its their latest report. The board of directors insisted that the economic recovery will continue but other members of the board of directors believe that there are still industries lagging behind because of lack of investments and exports.
The Federal Government indicated a 6 percent growth in one of its latest public finances report, a target that aligns with Banxico’s analysis in the latest trimestral publication. The news represent an important step for Mexico’s recovery from the COVID-19 pandemic, as the country fights to climb back to its 2019 pre-pandemic economic numbers.