Hola everyone!
This is Augusto from TCF Mexico.
The Mexican Economy is improving and expanding by 2.6% compared to 2.4% in the second quarter of 2016. Growth in services and agriculture pushed economic growth, while manufacturing also steadily improved. For example, in the third quarter, the hotel and restaurant sector grew by 7.1%, fuelled in part by increased tourism driven by a weaker peso.
Meanwhile, the Mexican Central Bank (Banxico) forecasts the economy to grow between 2.5 and 3.5% for 2016, while a consensus of economic forecasters set the estimate at 3%. Mexico's unemployment rate also fell under 4% in November 2015 to an eight-month low.
With the oil industry hit so hard, a further plunge in 2016 to the $20 per barrel level forecast by Goldman Sachs could put unsustainable economic pressure on big oil-producing countries. In 2015, the domestic services sector overcame the oil bust and accounted for Mexico's ability to sustain its economy while other Latin American countries struggled.
