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Bank Of Mexico cuts 2007 GDP growth estimate

Bank Of Mexico cuts 2007 GDP growth estimate

The Bank of Mexico said Monday it has lowered its economic growth estimate for this year, based on expected slower growth in the United States.
The bank also announced that remittances sent by Mexicans living in the U.S. and other countries increased in the first quarter at a rate far below that of last year.
The bank predicts a growth range of 3 percent to 3.5 percent in 2007, down from its previous estimate of 3.25 percent to 3.75 percent. The bank's director of economic research, Manuel Ramos Francia, said officials anticipate the creation of 660,000 formal sector jobs in 2007, down from the previous estimate of 900,000.
Ramos estimated this year's inflation at 3.5 percent to 4 percent, above the government's 3 percent goal.
In Canada on Monday, Mexican Treasury Secretary Agustin Carstens said his department also was lowering its initial growth estimate to 3.3 percent from the previous 3.6 percent based on expected sluggishness in the U.S. economy.
The Mexican economy grew 4.8 percent in 2006, the highest rate since 2000.
Remittances sent by Mexicans living abroad _ the country's largest source of income after oil _ increased 3.4 percent in the first three months of this year over the same year-ago period, compared to a 27.5 percent growth in the first quarter of 2006 in relation to 2005.
Mexicans sent US$5.36 billion (euro3.94 billion) back home through March, the central bank said in its quarterly inflation report.
According to central bank statistics, remittances' growth began slowing down last year when they grew 15.1 percent to a record US$23.05 billion (euro16.94 billion).
The Bank of Mexico has said tougher U.S. border security and the difficulty for Mexicans to find a job once in the United States are among the reasons for the decline.


Updated : 2021-08-02 05:38 GMT+08:00