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Wednesday, June 1, 2011

Mexico's GDP Forecasted to Reach Up to 5% for This Year

In an interview with Bloomberg last week, the Governor of Mexico’s central bank, Agustin Carstens, stated that Mexico’s GPD is expected to be between 4%-5% for 2011. The forecast, released by the central bank this past May 11, replaces the previous GDP estimate of 3.8 percent to 4.8 percent growth in the region.

“Fiscal equilibrium, a good balance of payments, record international reserves and well-capitalized banking systems are providing a lot of economic certainty going forward,” said Carstens, adding that banks are becoming much more willing to lend, “supporting consumption, construction and housing."

On Monday of this week came additional good news for investors, when the peso rose 0.5% to 11.6896 per US dollar. In 2011, the peso has made gains of 5.6% against the dollar, making it “the best performer among the seven major Latin American currencies”, according to Bloomberg analysis.

Source: Bloomberg.com

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