Bank of Mexico Lowers 2017 Economic Growth Forecast to 1.3-2.3%

The Bank of Mexico reduced on Wednesday the economic growth forecast for 2017 by two-tenth of a percentage point to 1.3-2.3 percent compared to the previous prediction, according to the report of the country's monetary authority.

MEXICO CITY (Sputnik) — The latest forecast estimated the growth rates at 1.5-2.5 percent, while the forecasts for this year made in March 2016 amounted to 2-3 percent and in November 2015 stood at 3-4 percent.

The forecast for the year 2018 also dropped to 1.7-2.7 percent instead of the earlier estimates at 2.2-3.2 percent.

The Mexican peso has fallen to record lows since last year. In early January, the exchange rate of peso against the US dollar renewed its historical minimum on in the wake of US President-elect Donald Trump's statements that the country would proceed with the construction of a wall on the border with Mexico.

The Central Bank of Mexico promised to provide up to $20 billion in currency hedges to aid the national currency that has seriously depreciated over the last months.