Economics

Mexico Central Bank Boosts 2021 GDP Growth Forecast to 4.8%

  • Banxico improves its GDP forecasts for the Mexican economy
  • The central bank forecasts inflation to end the year at 3.6%

Public benches blocked off with caution tape in Puebla, Mexico.

Photographer: Koral Carballo/Bloomberg
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Mexico’s central bank improved its outlook for Latin America’s second-largest economy, saying it will grow faster than expected this year after a recovery at the end of 2020.

In its main scenario, the central bank known as Banxico expects Mexico to grow 4.8% this year versus a 3.3% increase forecast three months ago, according to a quarterly inflation report posted to the bank’s website Wednesday. The economy could expand in 2021 as little as 2.8% and as much as 6.7%, Banxico said, mentioning two other scenarios.