Moody's and other banks lower growth expectations for Mexican economy

Moody's Investors Service lowered its 2017 GDP growth forecast for the Mexican economy from 2.5 to 1.9 percent on 14 November 2016 and cut estimates on economic activity in the country from 2.7 to 2.3 percent in 2018 (El Financiero and Expansion). The rating agency forecast weakened short term investment in Mexico due to the uncertain trade relationship between the U.S. and Mexico noting risks associated with a change in trade policy brought on by the new U.S. administration and a possible renegotiation of NAFTA (El Financiero and Expansion). Both HSBC and Santander also cut their GDP growth estimates to 1.7 percent, down from respective forecasts of 2.3 and 2.2 percent growth (El Financiero). The Bank of Mexico and Finance Secretariat continue to have more optimistic views with GDP growth estimates for 2017 falling in the range of 2 to 3 percent (Pulso).