MEXICO CITY – The Mexican economy will fall short of the government’s growth target for 2013 thanks to the two tropical storms that struck the Aztec nation simultaneously this month, analysts said Wednesday.
Manuel and Ingrid, which killed 139 people and inflicted property damage in 23 of Mexico’s 32 states, will hurt the economy by pushing up food prices, hampering tourism and reducing discretionary spending, the research department at Ve por Mas bank said.
“This will have a substantial negative impact on GDP in the third quarter,” the bank said, holding growth to 0.9 percent, compared with the earlier forecast of 1.4 percent.
Mexican GDP will increase by 1.2 percent for the year as a whole, short of the government’s projection of 1.8 percent expansion, Ve por Mas said.
The effects of Manuel and Ingrid will shave 0.2 percent from GDP in the third and fourth quarters, according to Eduardo Gonzalez, chief economist at Banamex, Mexico’s second-largest financial institution.
Banamex predicts Mexico’s GDP will grow only 1.1 percent this year. EFE