World Bank Forecasts Mexico Will Grow 0.9 Percent in 2023

The World Bank forecasted Mexico’s economy to grow 0.9 percent in 2023, 1 percentage point below its last forecast of mid-2022, according to the latest Global Economic Prospects report. In 2022, the country grew by 2.6 percent, surpassing the bank’s forecasts.

The international development institution downgraded almost all its forecasts for advanced economies in the world, cutting its growth outlook for the global economy to 1.7 percent from the original projection of 3 percent.

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Omar Mejía’s BANXICO Nomination Is Unexpected: Analysts

The Ministry of Finance nominated the adviser to the Bank of Mexico (BANXICO) Omar Mejía Castelazo as the institution’s new deputy governor, an unexpected choice to replace Gerardo Esquivel, analysts say.

Inflation to Ease Up in 2023: Fed

Inflation might ease up in 2023 thanks to the GDP growth seen during the second half of 2022, said James Bullard, President, US Federal Reserve (Fed). However, BANXICO still believes it will be necessary to raise interest rates.

In-Person Procedures at SAT Increased by 56 Percent in 2022

Mexican taxpayers carried out over 20.8 million in-person procedures at the Tax Administration Service (SAT) in 2022. This figure represents a 56 percent increase compared to 2021, when over 9.1 million procedures were carried out.

BANXICO Delineates Monetary Policy

Most of BANXICO’s Governing Board voted to increase the target for the Overnight Interbank Interest Rate by 50 basis points to 10.50 percent. BANXICO forecasts a conversion of 3 percent within the forecast horizon with its interest rate increase.

Inflation’s Non-underlying Component Shrank in December: BANXICO

Mexico’s economy saw a small recovery during the last quarter of 2022, according to BANXICO. While the country’s underlying inflation increased, the non-underlying component of inflation decreased despite numerous expert forecasts.

UK Lays the Ground for a Digital Pound

While the EU, China and other countries are working to create Central Bank Digital Currencies (CDBCs), the UK is focusing on the design and regulation of a digital pound with no rush, as getting it right is a bigger priority than a rapid launch, according to UK’s Financial Services Minister Andrew Griffith.

The World Is “Perilously Close” to Recession in 2023: World Bank

The World Bank slashed its 2023 global growth forecasts from projections made by mid-2022 as economic conditions worsened, putting several countries at levels teetering on the brink of recession.