WASHINGTON – The International Monetary Fund (IMF) revised on Tuesday its economic growth forecast for Mexico upward to 2.1 percent for this year, despite the uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA).
“In Mexico, growth is expected to soften to 2.1 percent in 2017 and 1.9 percent in 2018,” the IMF said in its World Economic Outlook Report.
“Despite the uncertainty related to renegotiation of the North American Free Trade Agreement ... growth for 2017 has been revised upward reflecting better-than-expected growth outturns for the first two quarters of the year and a recovery in financial market confidence,” the IMF said.
“In the medium term, the assumed full implementation of the structural reform agenda is projected to lift growth to 2.7 percent,” the IMF said.
The chief negotiators from the United States, Canada and Mexico will open the fourth round of talks on renegotiating NAFTA this week in Washington.
The IMF revised its 2018 growth forecast for Mexico downward from 2 percent to 1.9 percent.
“In the medium term, the assumed full implementation of the structural reform agenda is projected to lift growth to 2.7 percent,” the international financial institution led by Christine Lagarde said.
The upward revisions for Mexico and Brazil – the other major Latin American economy – improved the regional outlook from a 1 percent estimated growth rate three months ago to 1.2 percent GDP growth this year.