The Bank of Mexico said Wednesday that it expects the economy to grow at least 2% this year as global economic activity and trade have picked up, and the domestic market is proving resilient.
In its quarterly report, the central bank estimated that gross domestic product will expand between 2% and 2.5% in 2017, compared with its previous estimate of 1.5% to 2.5%. For 2018, the bank raised its growth forecast to a range between 2% and 3% from its previous 1.7% to 2.7% estimate.
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"The outlook for economic growth in Mexico appears to have improved," the bank said.
Although uncertainty remains over the future of bilateral relations between Mexico and the U.S., the most recent information suggests a lower probability of events that could have the most negative impact on growth, it added.
Mexico's GDP grew for a 16th consecutive quarter in the April-to-June period and was up 2.3% in the first six months of the year from the first half of 2016. The economy also grew 2.3% in 2016.
The Bank of Mexico maintained its expectation that inflation, at 6.6%, will start to ease toward the end of the year and slow even more sharply in the first months of 2018. It sees inflation returning to the bank's 3% target toward the end of next year.
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(END) Dow Jones Newswires
August 30, 2017 14:35 ET (18:35 GMT)