UTEP: Mexican Economy Growing
A continuous growth in Mexico's economy promotes an optimistic forecast from UTEP expert panelists, with a 3.5 percent expansion of GDP and a 3.9 percent projected rise in consumer prices.
“The panel members have a marginally more optimistic forecast for economic activity for 2012,” said Tom Fullerton, Ph.D., associate professor of economics. “The bulk of that improvement is related to higher private and government consumption forecasts.”
The latest Consensus Economic Forecast report for Mexico released this week by the Border Region Modeling Project at The University of Texas at El Paso stems from a survey of economists from public, private and academic sectors who actively follow Mexico’s economic performance.
In a hotly contested presidential election year with the election less than two weeks away, Mexico’s economic stability is in the spotlight. However, Fullerton explained that none of the panelists anticipate “any type of severe disruption such as those that were observed during prior electoral cycles.”
Despite the substantial depreciation of the Mexican peso against the U.S. dollar during the past six weeks, Fullerton said the panelists anticipate that most of the currency market jitters have passed. Because of that, the peso is likely to appreciate during the second semester this year and hold steady against the dollar in 2013.