Mexico Economic Outlook. Fourth quarter 2020

Summary

The rebound in economic activity in 3Q20 has been higher than expected, although the pace will slow due to weak in domestic demand and a slowdown in external demand. We continue to anticipate a slowdown in inflation and lower interest rates, however we now expect these lower levels to be delayed a few months.

Key points

• Key points:
• There is still leeway for further appreciation of the peso; without significant risks to the balance of payments
• Public finances: public debt (% of GDP) will remain stable in 2021 provided that a tax reform is implemented

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