Private sector analysts raised their estimates for Mexico's Gross Domestic Product (GDP) for 2023, from a growth of 1.2 to 1.4%, according to the Bank of Mexico (Banxico). With the Survey on the Expectations of Specialists in the Private Sector Economy for March, analysts have already improved their predictions three times.

Regarding general inflation for the end of this year, the expectation went from 5.28% in February to 5.15% in March. By the end of 2024, the outlook for inflation increased slightly in relation to the previous month, from 4.07% to 4.08%, although the corresponding median remained at similar levels.

Consult here: Solili Offices Report Q1 2023, demand grew strongly and vacancy continues to decrease

Core inflation expectations were unchanged at 5.40% this year, rising to 4.07% next year from 4.04% previously. And regarding the interest rate of Banxico, the expectation of analysts is that it will close 2023 at 11.5% and will drop to 8.5% next year.

Likewise, the specialists consulted by Banxico anticipate a more appreciated peso at the end of 2023, since the projection is that the exchange rate will be at 19.44 pesos per dollar, while a month ago the forecast was 19.80 units per greenback.

Specifically, the survey participants forecast an increase in the National Consumer Price Index (INPC) of 0.31% per month in March, or 6.89% annually.

Of interest: Solili Industrial Report 1Q 2023, industrial demand in Mexico grew 47% compared to 1Q 2022

Of the 31 participants who answered the questions regarding the next move in monetary policy, 21 estimate that the next interest rate change will be a 25 basis point hike in May, while the rest project a cut of between 25 basis points and 75 basis points, with September being the closest date.

Thus, the projection for the target interest rate at the end of 2023 decreased to 11.38 percent from 11.50% a fortnight ago. By the end of 2024, the forecast remained unchanged at 8.50%.

In Solili you can consult industrial warehouses and offices available in Mexico City

Original note