Boston, MA -- (ReleaseWire) -- 02/18/2014 -- We remain optimistic about Mexico's long-term growth outlook on the back of a booming manufacturing sector, an increasingly strong private consumer and favourable demographics.
The passage of energy sector reform will bolster sentiment towards Mexican assets and contribute to stronger real GDP growth in the coming years.
Major Forecast Changes
We have upgraded our 10-year average real GDP growth from 3.8% to 4.1% following the passage of energy sector reform, which we expect will garner significant foreign investment in the coming years.
We have revised our 2014 average exchange rate forecast from MXN12.65/US$ to MXN12.55/US$, as the peso was stronger than initially expected in 2013, when it averaged MXN12.76/US$.
View Full Report Details and Table of Contents
We have revised our 2014 current account deficit forecast from 1.0% of GDP to 0.7% of GDP, owing to a strong export outlook, particularly regarding the manufacturing sector.
We have revised our 2014 fiscal deficit forecast from 2.6% of GDP to 3.1% of GDP following the announcement of additional government spending this year.
Key Risks To Outlook
A further deterioration in the construction sector poses significant downside risk to our 2014 real GDP growth forecast. We expect the sector to recover after it contracted for several consecutive quarters since late 2012. However, homebuilders remain in a critical state financially, which could lead to an additional deterioration of the sector.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Country Reports research reports at Fast Market Research
You may also be interested in these related reports:
- Oman and Yemen Business Forecast Report Q2 2014
- Kuwait Business Forecast Report Q2 2014
- Canada Business Forecast Report Q2 2014
- Chile Business Forecast Report Q2 2014
- Hong Kong Business Forecast Report Q2 2014
- Croatia Business Forecast Report Q2 2014
- Japan Business Forecast Report Q2 2014
- Hungary Business Forecast Report Q2 2014
- Botswana Business Forecast Report Q2 2014
- Brazil Business Forecast Report Q2 2014