HOUSTON CHRONICLE: The Federal Reserve Bank of Dallas has downgraded its 2019 outlook for Mexico’s economy amid declining crude oil exports, weakening industrial production and the declining value of the peso.
In a report released on Monday, economists with the Dallas Fed are projecting that Mexico’s economy will grow by 1.9 percent in 2019 — a decrease from a November forecast predicting 2 percent growth.
Mexico’s economy has grown by 2.4 percent through the third quarter but mixed economic indicators are prompting the Dallas Fed’s downward forecast for 2019.
Although retail sales and employment figures are up in Mexico, exports and industrial production have fallen, the Dallas Fed reported.
Manufacturing accounts for 88 percent of Mexico’s exports while crude oil accounts for nearly 7 percent.
Mexico saw some benefits from higher oil prices earlier this year but those are expected to be erased by the current cycle of falling commodity prices.
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