Mexico’s GDP: On Track

Posted February 16, 2012 by Editor

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• Mexican preliminary national accounts data for the final quarter of 2012 describe an economy growing at a solid but unspectacular, within-expectations, annual pace, with potential to accelerate as the US economy gathers strength, but lacking the momentum and demand on resources that could trigger an inflationary cycle.
• As a result, the scenario of stable policy, particularly at the central bank, becomes ever clearer for the foreseeable future.  The odds of additional interest rate cuts, which rose in the middle of 2011, seem negligible now, but there is no evident reason—nor is there any evident concern among Banco de Mexico’s policymakers—that would lead to the start of monetary tightening in the near-term.

2-16-2011–EMG INDICATORS AND INSIGHTS _Mexico-GDP q4, 2011_[/private]