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LatinNews Daily - 04 March 2021

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In brief: Banxico revises up Mexico’s growth forecast

* In its latest quarterly report, Mexico’s central bank (Banxico) has revised up its forecast for Mexico’s GDP growth for 2021, to 4.8% from 3.3% previously. The report states that the recovery of the economy, which shrank by 8.2% in 2020 due to the impact of the coronavirus (Covid-19) pandemic, continued in the fourth quarter of 2020, at a slightly better rate than expected in its previous report. However, it notes that “economic activity remains lower than levels prior to the health emergency and continues to face considerable uncertainty”. Banxico’s revision comes the day after private sector economists consulted by Banxico slightly improved their 2021 GDP growth forecast to 3.89%, up from 3.74%. Banxico expects inflation to close the year at 3.6%, up from its previous forecast of 3.3%. This is within its target range of 3% (with a tolerance range of 1 percentage point above or below).