WASHINGTON.- The International Monetary Fund (FMI) has reduced it's projections for economic growth in Mexico, cutting it down from 2.9% to 1.2% this year, due to the fall in public spending and the lower demand from the United States during the first semester, which of course doesn't mean there cannot be an upturn in 2014.
In their report about “Global Economic Perspectives”, which was published this week, FMI assures that the second Latin American economy could close around 3% in the next year thanks in part “to improvements of Manufacturing backed up by the recovering demand from the United States”, public spending and the results from structural reforms.
These reforms allow FMI to foresee Mexico's annual economic growth, estimating that it will maintain itself around 3.5% and 4%.
The President of Mexico, Enrique Peña Nieto, started his presidential term in December of last year, with a series of reforms planned for the energetic and financial sectors, economic competition as well as other reforms related to public safety and law enforcement.
FMI places their growth projections for Latin America until 2014 to stay around 3%, slightly below what was projected in July, keeping in mind that there are “downturn risks” which require close attention.
In general terms FMI recommends to continue consolidating competition in all of Latin America, as well as increasing productivity and savings, without reducing investment.
It also reminds people of the exposition of developed economies or China, which could make the greater economies in Latin America face a more adverse scenario.