Mexico’s economic predictions for 2013

By Adina Moloman

Sources: Reuters

Mexico economy should expand by 3.75 percent to 3.85 percent this year and return to 4 percent growth in 2013 according to a group of experts on world economy.

Banco de Mexico slashed its 2013 economic inflation forecast for Mexico to 3.76 percent from 3.71 percent previously. It is considered an acceptable level of inflation. The target for inflation is 3 percent.

Mexico’s central bank left interest rates unchanged at 4.5 percent. Investors in Mexico Manufacturing Corporations have nothing to worry about since interest rates has been held unchanged since 2009 and is expected to be steady until 2014.

In October 2012, input prices rose to 58.95, followed by a small increase on prices by Mexico Manufacturers as well.

This is seen as a temporary event but the Bank of Mexico is watching carefully for signs of current high inflation. The Central Bank will raise credit costs if this happens.

Mexico’s jobless rate fell in September 2012 to its lowest since October 2008, a good sign that Mexico is getting out of a deep recession which drove up unemployment back in 2008.

Exports to United States, the most important distribution market for Mexico products are expected to be steady.

Remittances sent back by Mexicans living abroad were around 11.6 percent for the middle of this year with a total of $1.9 billion, slower than the same time last year.

The remittances are reaching down their lowest level since October 2009. The slowdown is due to a weakness in U.S. construction activity, a sector that employs many of the Mexicans living in the United States.