Mexican central bank cuts growth forecast

Mexico's central bank trimmed its growth forecast for the country yesterday, citing uncertainty about the level of impact the quickly spreading coronavirus could have on global growth.

Banxico cut its growth forecast for this year to an annual range between 0.5pc and 1.5pc from the 0.8-1.8pc range of growth originally forecast for 2020.

In an environment of "pronounced uncertainty," because of global commercial tensions, the coronavirus outbreak in China has caused volatility in the financial markets and could affect global trade more than originally thought, Banxico said.

Mexico has no confirmed cases of coronavirus, but globally there were 82,104 cases across 45 countries, the World Health Organization, said today.

Any further deterioration in Mexico's investment climate or downgrade in state-owned Pemex's credit rating would further drive down the forecast.

Mexico's economy shrank 0.1pc last year, the first economic contraction in ten years as uncertainty in the first year of President Andres Manuel Loepz Obrador's government slowed investment.

Lopez Obrador had pledged to close out his first year in office with 4pc growth.

By Rebecca Conan