Mexico: Banxico forecasts 2021 GDP growth of 4.8%

In its latest forecasts, the central bank of Mexico (Banxico) said on Wednesday that it expects the Gross Domestic Product (GDP) to expand by 4.8% in 2021 and 3.3% in 2022, as reported by Reuters.

Additional takeaways

"Banxico forecasts 2021 fourth-quarter inflation of 3.6%."

"Economy expected to create between 250,000 and 570,000 jobs in 2021."

"Mexican economy expected to create between 390,000 and 590,000 jobs in 2022."

"Headline inflation is expected to increase during the second quarter."

"Creating conditions to attract greater investment, improve business perception and strengthen institutional framework are needed."

"Episodes of peso depreciation is seen as a risk to inflation."

"Balance of risks to growth are biased to the downside."

"Headline inflation is expected to be near the bank's 3% target in a 12 to 24-month horizon."

Market reaction

The USD/MXN pair continues to push higher after this report and was last seen gaining 1.75% on a daily basis at 20.9640.