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Due to a more limited private investment for the first year of the government of Mexico's virtual elected president, BMI Research lowered its growth estimate for the country to 2, 6% by 2019 ] on the estimated 2.8% one week before the elections on July 1st.
The change in the prognosis of is due to the new composition of the legislative branch which will give rise to a cautious approach to investment given the wide scope of application of some of its most radical policy proposals
. investor concerns about a possible decline in the liberalization of the energy sector and the fact that the government has a greater influence on the economy will cushion investments in the coming quarters, believes BMI Research. Uncertainty will weigh on short-term investment, and we note downside risks if AMLO continues with some of its most radical policy proposals "said the agency, a subsidiary of Fitch Ratings, in a report.
BMI Research analysts reported that in 2019 economic growth will be driven by the manufacturing and service sectors after the US economic recovery and its effect on the demand for manufactured goods and the sending of funds to Mexico, which will maintain the upward trend in retail sales.
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