WASHINGTON – The International Monetary Fund has slightly lowered its expectations for economic growth in Mexico, citing weak domestic demand and non-expansionary fiscal policies.
The World Economic Outlook, released Tuesday at the start of the IMF-World Bank spring meetings, projects 3 percent growth in Mexico’s gross domestic product this year, down from 3.2 percent in the Fund’s January forecast.
Mexican GDP grew only 1.4 percent in 2013 and 2.1 percent last year.
Despite its “sound prospects,” the Mexican economy must contend with “weak domestic demand and a more restrictive fiscal posture countering the positive impact of growth in the United States,” the IMF said.
The Fund’s economists expect Mexico to have an inflation rate of 3 percent in 2015.
In previous reports, the IMF said the ambitious “reforms” implemented by President Enrique Peña Nieto since taking office in December 2012 would provide additional impetus to the Mexican economy.
Peña Nieto has implemented controversial overhauls of Mexico’s state-dominated energy industry and of the country’s labor laws.