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Mexico Economy Slowed to 2.2%

Mexico Economy Slowed to 2.2%Mexico Economy Slowed to 2.2%

Mexico’s economy grew by around 2.2% in 2016, Finance Minister Jose Antonio Meade said on Thursday, a rate that would mark a slight slowdown from the previous year.

Latin America’s second biggest economy expanded by 2.5% in 2015. An official estimate for Mexican gross domestic product in 2016 is due to be published by the national statistics institute on Jan. 31, Reuters reported.

Speaking at an event in Mexico City, Meade said the peso weakness reflected a “very pessimistic” outlook on the country’s capacity to attract investment.

The peso has depreciated amid fears over US president-elect Donald Trump’s policies towards Mexico, and broke the 22 peso per dollar mark for the first time on Wednesday.

Trump has vowed to tear up a joint trade deal with Mexico if he cannot renegotiate it in the United States’ favor, and threatened to impose hefty taxes on goods destined for the US market made in Mexico.

With over a week to go until his inauguration, Trump has already had a profound effect on Mexico’s economy and politics.

The Mexican peso has dropped 16% of its value against the dollar since Trump’s election victory on Nov. 8.

Analysts say Trump’s tweets threatening tariffs against products made in Mexico have put at crimp on foreign investment in the country, a measure for an economy based on international trade.

Trump has zeroed in on the automobile industry, threatening to impose tariffs or a border adjustment tax on cars made in Mexico for US consumption.

 

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