Mexican central bank cuts growth forecasts for 2013, 2014

Mexico's central bank (Banxico) has cut its GDP growth forecasts for both this year and 2014, its latest quarterly inflation report shows.

Banxico reduced the estimated 2013 growth range to 0.9-1.4% from the 2-3% it had given in the previous inflation report. For next year, the forecasted growth range was lowered to 3-4% from 3.2-4.2%.

The monetary authority said that this year's downgrade was due to the economy's weaker than expected performance in the first half of the year. And the main reasons for expecting slower growth in 2014 are the uncertain global environment and the fragility of the US industrial sector.

For 2015, Banxico expects the Mexican economy to expand in the range of 3.2-4.2%.

As for inflation, the central bank sees the annual inflation rate ending this year at close to 3.5%, remaining at around 3.5% during next year and falling towards its 3%-target in 2015.