Banxico cuts 2017 growth forecast on lower outlook for U.S. industrial production

Mexico’s central bank has cut its growth forecast for 2017 for the second time this year. In its quarterly inflation report, the central bank forecast a 2.3% and 3.3% rise in Mexico's gross domestic product in 2017, less than its previous estimate of 2.5% to 3.5%.

Banxico blamed this downward revision on “the adverse international environment, and in particular the downward revision of growth expectations for industrial production in the US”, writes Jude Webber in Mexico City.

However, the central bank said it is keeping its growth forecast unchanged at between 2.0 and 3.0 per cent for the year 2016. However, the government slashed its 2016 growth forecast last week to between 2.2 and 3.2 per cent, compared with a previous 2.6 to 3.6 per cent target.