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Mexico & Nafta - July 2016 (ISSN 1741-444X)

Second-half slowdown?

Economic activity in Mexico may lose dynamism in the second half of the year as the domestic market cools on the back of higher interest rates and the external sector deteriorates in response to the United Kingdom’s vote to leave the European Union (‘Brexit’). According to a late-June consensus of private economists surveyed by the central bank (Banxico), real annual GDP growth will slow to 2.3% in the second half of 2016, from an estimated 2.7% in the first six months of the year.

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