Despite global uncertainty after the impact of the Covid-19 pandemic and the war between Ukraine and Russia, President Andrés Manuel López Obrador has predicted that the Mexican economy will grow by around 4% by the end of the year.
In a summary of the state of the economy in the first five months of the year, the head of the federal administration also suggested that this assessment could be reflected next year, the last year of his administration.
“We are already raising the situation compared to the epidemic. Our forecast for this year is that we can achieve 4% annual growth. The same thing next year, which will be the last year of the government, but this unexpected event (epidemic) has touched us and we are leaving,” he said.
Lee: Pansico still sees uncertainty in inflation; Expect the rate to remain unchanged for a long period of time
Despite the confidence of the federal executive, the Bank of Mexico (BANXICO) yesterday assumed that the growth of this year’s gross domestic product (GDP) will reach 1.6%, 2.3% than estimated in the previous report.
This is a situation where hyperinflation continues to permeate the world, the central bank said yesterday, adding to uncertainty due to geopolitical conflicts in Eastern Europe.
Deputy Governor Galia Borja explained yesterday that the GDP forecast is subject to risks due to the high uncertainty and complex outlook in the global economy.
According to the market reflected in the Citibanamex survey, Mexico will achieve economic growth of 1.9%.
Notably, the Ministry of Finance and Public Credit (SHCP) expected the national economy to register an annual growth of 3%.
Similarly, in May, 40,000 new jobs were created in the country, so the number of people with jobs is expected to reach 22 million, higher than before the coronavirus pandemic.
“We have done well in employment. It is a registration number. IMSS has 21 million 862 thousand 909 workers. We closed May with more than 40,000 jobs. Soon, it will cross 22 million this year. “Compared to February 2020, we have 1,249,373 additional jobs,” he said.
In terms of remittances, an estimated $60 billion will be received by the end of the year, for which the president thanked Mexican immigrants, citing the contribution of Mexican immigrants to the economy of poor families. Country.
Yesterday, Banksico explained that remittance flows increased by 10.1% in the first quarter of 2023, for which it has already accumulated 36 months of growth. From January to April 2023, remittance income was worth $18,974 million.