MEXICO CITY: The government of Mexico, Latin America's second largest economy, has cut its growth forecast for this year and 2020, but also projected a fall in inflation.
For 2019, the finance ministry estimated growth would be between 1.1 and 2.1 percent compared to its previous forecast of 1.5 and 2.5 percent, reports AFP.For next year, GDP was projected to grow between 1.4 and 2.4 percent, below the previous range of 2.1 to 3.1 percent.
Both forecasts are part of a document that will be used to draw up the budget for 2020 and which was delivered to the Congress on Monday.
The ministry cautioned that the estimates "do not take into account the effects of the economic development strategy of the current administration nor other factors that may imply stronger growth".
Along with an aggressive program of austerity and spending cuts, the leftist government of President Andres Manuel Lopez Obrador has been implementing social programs, which include financial support for various vulnerable groups and which are expected to stimulate spending.