Inflation in Mexico is below the forecast
Inflation in Mexico in May was below the forecast, reported Reuters on June 9. According to the report of the national statistics agency INEGI, annual inflation in May increased to 2.84% from the April indicator of 2.15%.
The indicator is at its lowest level since 2015 and is below the rate of the central bank of Mexico.
This is due, among other things, to the low income of the population and the economic slowdown due to the coronavirus. Note that the World Bank predicts a drop in Mexico's GDP in 2020 by 7.5%. This is not a very good indicator. Previously, financiers were confident that the economy would fall by no more than 6%.
According to experts, a sharp slowdown in economic growth in the United States and China disrupted supply chains to Mexico and Brazil and caused a sharp drop in exports from commodity-producing countries such as Chile and Peru.
According to the financial site IQ OPTION, for Mexico the crisis will be more serious than in 2008. The decline in oil production in Latin America should reach 7.2% in 2020, with oil and gas exporters suffering more than others. The recovery will begin next year with GDP growth of 2.8%.