| | |  Business News | July 2009 
Mexico Economy Could Shrink 6.3% in 2009 - Poll
 Jason Lange, Pedro da Costa & Robert Campbell - Reuters
go to original
July 01, 2009
 |  | Remittances by Mexican workers to their families in the country fell 19.87 percent in May to $1.9 billion compared with the same month in 2008. |  | | |
Mexico City - Mexico's economy will probably shrink 6.3 percent this year as a severe U.S. recession dents the country's exports, analysts told the central bank in a poll released on Wednesday.
The findings show Mexico's outlook worsening from what was already expected to be its deepest economic contraction since at least 1995.
Just a month earlier, economists had forecast a 5.5 percent decline in gross domestic product for this year.
The central bank poll projections represent the average forecasts from 30 financial institutions within Mexico and abroad.
Declining growth would lead to a slight moderation in inflation, even if did not wipe it out altogether. Analysts saw consumer prices ending 2009 at 4.37 percent, down from 4.41 percent in the May survey.
Mexico's economy is very closely linked the United States, mired in a severe recession. Some 80 percent of Mexico's exports flow to its northern neighbor.
Against that backdrop, remittances by Mexican workers to their families in the country fell 19.87 percent in May to $1.9 billion compared with the same month in 2008, the central bank said.
Migrant remittances are a major source of foreign exchange for Mexico and a key income supplement for many poor families.
(Editing by W Simon) |
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us