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Global slowdown drags Mexico growth forecast, says OECD

Source: Xinhua| 2019-03-07 09:17:10|Editor: Shi Yinglun
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MEXICO CITY, March 6 (Xinhua) -- The Organization for Economic Cooperation and Development (OECD) downgraded Mexico's growth forecast for 2019 and 2020 on Wednesday, citing a bigger global slowdown than anticipated.

The organization shaved half a point from the country's projected growth, forecasting that its gross domestic product (GDP) will expand by 2 percent this year and 2.3 percent the next.

These latest figures update the OECD's last global economic outlook report, issued in November.

The global economy is slowing and major risks persist, with growth weakening much more than expected in Europe, the Paris-based organization said.

"The trade restrictions introduced last year are a drag on growth, investment and living standards, particularly for low-income households," the report said.

However, the economic indicators in Mexico appeared positive, according to the group, with a solid rise in remittances and an increase in the minimum wage potentially boosting domestic demand in Latin America's second-largest economy.

A downward inflationary trend should also offer the central Bank of Mexico (Banxico) more wiggle room in setting monetary policy, the OECD said.

Yet another positive factor was the new government's plan to spur infrastructure projects and raise oil output, said the OECD.

The organization downgraded its global growth forecast by 0.2 percent, to 3.3 percent for this year.

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