Insecurity to affect Mexican economy in 2012: central bank
2012-02-17 16:57:14
Social insecurity plus a lack of structural reforms could affect the country's economy in 2012, Mexico's central bank (Banxico) said Thursday.
The country's woes could be compounded by turmoils in global financial markets, according to a Banxico report sent to the Senate.
The real test for the country this year would be whether it could boost internal demand to offset the impact of negative external factors, the central bank said.
The report estimates that inflation will remain at 3 percent this year, and the number of people applying for Social Security compensations would increase from 500,000 to 600,000.
It also predicts a trade deficit of 3.9 billion U.S. dollars for 2012, an equivalent to 0.3 percent of the GDP and a current account balance of 13.7 billion dollars, or 1.2 percent of the GDP.