Mexico's GDP to Contract by 9.3 Percent in 2020By MBN Staff | Thu, 11/26/2020 - 11:22
Mexico’s central bank seems more optimistic about the economy than it was three months ago. In its quarterly report released on Wednesday, Banxico said it expects GDP to fall from 8.7 percent to 9.3 percent. In its July-September report, the bank forecast a drop of between 8.8 percent and 12.8 percent.
“An environment of high uncertainty is still associated with the evolution, both globally and nationally, of the pandemic, while restrictions on operations in different sectors remain. In particular, new outbreaks in several economies and the absence of an effective treatment or available vaccine have prolonged the duration of the health emergency compared to initial estimates,” Banxico stated in its report.
The bank, led by Alejandro Díaz de León, added that recovery will be slow due to "the expiration of fiscal stimuli in various countries or a worsening of the pandemic.” As for the labor market, Banxico estimates a loss of 700,000 to 850,000 jobs registered at IMSS. By October, this figure stands at 518,609.
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