Mexico’s economy to grow 4.5 percent: IMF

August 9th, 2011 - 11:32 am ICT by IANS  

Washington, Aug 9 (IANS/EFE) Mexico’s economy has rebounded from the global economic crisis and will grow about 4.5 percent this year, while “inflation has remained benign”, said the International Monetary Fund, or IMF.

“After a sharp contraction in 2009, growth in Mexico picked up strongly in 2010, reaching 5.4 percent,” the IMF said at the end of a meeting with Mexican officials.

“Robust growth has brought output back to pre-crisis levels, with manufacturing exports leading the recovery and the rebound in domestic demand helping sustain the momentum,” the IMF said Monday.

After contracting 6.2 percent in 2009 and growing 5.4 percent in 2010, Mexico’s gross domestic product will expand 4.5 percent this year and 4.1 percent in 2012, the IMF said.

“This rapid rebound in output has been underpinned by Mexico’s sound public and private sector balance sheets, strong prudential framework, and the effective countercyclical policy response,” the IMF said.

Mexico’s floating exchange rate has also provided “an important buffer to the fallout from the global crisis”, the IMF said.

“The near term outlook is supported by the expected continued recovery in the US and solid domestic demand growth in Mexico,” the international financial institution said.

“In this context, inflation has remained benign, with headline and core inflation declining to the 3 percent target,” the IMF said.

–IANS/EFE
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