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Weekly Report - 28 January 2010 (WR-10-04)

MEXICO: Central bank raises forecasts

The Banco de México this week published more optimistic forecasts for the economy in 2010. It raised its GDP growth forecast to a rate of between 3.2% and 4.2%. Previously, the bank had been forecasting a GDP growth rate of between 2.5% and 3.5%. Policymakers seem to have been heartened by some surprisingly strong economic output figures (Igae) for November. The problem with these Igae figures is that they do not tally with employment data for December.

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