Mexico City, March 16 (IANS): Geopolitical conflicts in Eastern Europe have exacerbated uncertainty surrounding the Mexican economy, the Mexican Institute of Financial Executives (IMEF) said.
In its monthly analysis, the private organization indicates that the world economic landscape has changed in particular because of the Russian-Ukrainian conflict, the impact of which is still premature to measure.
IMEF members lowered Mexico’s economic growth forecast for the year from 2 percent forecast in February to 1.9 percent, Xinhua news agency reported.
Meanwhile, the analysis pointed out that the Mexican economy is also affected by a combination of negative internal factors, such as declining economic activities, rising inflation and a huge deficit revealed by the latest figures from the trade balance.
A recent rise in crime has also dragged down the economy, the IMEF noted, as it has undermined the rule of law and further disrupted a virtuous circle of trust, investment, jobs and growth.
The institute added that the unfavorable environment could lead the current administration to make spending cuts and adjustments in the coming months.
The economy of Mexico, the second in Latin America after Brazil, grew by 4.8% in 2021, after plunging by 8.2% in 2020 due to the Covid pandemic, according to the National Institute of statistics and geography.