Sees inflation trending back down by year end
- 2017 growth at 1.3% to 2.3% in 2017. That is down from 1.5% to 2.5%
- 2018 they see growth at 1.7% to 2.7% vs 2.2% to 3.2% previously
- See inflation above target limit of 4% for most of 2017 but will trend down by year end
- Sees inflation converging close to 3% target by end of 2018
- Despite uncertainty, proposals mentioned by US government point to action that will obstruct relations between US and Mexico
- uncertain environment around US policy has influenced consumer and business confidence, foreign direct investment, remittance to Mexico
- growth outlook incorporates certain deterioration of trade flows between US and Mexico and less direct foreign investment
- it would be costly for the economy to try to contain short-term price impacts