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LatinNews Daily - 22 October 2021

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In brief: BBVA lowers growth forecast for Mexico

* The Mexican branch of the BBVA bank has lowered its 2021 growth forecast for Mexico from 6.3% to 6.0%, attributing the reduced forecast to weak internal consumption and low growth in the automobile manufacturing sector due to bottlenecks in supply chains. Carlos Serrano, the president of BBVA México, noted that “this is a slower recovery than what we’re observing in other Latin American economies, and is principally due to the absence of a countercyclical response.” Nonetheless, BBVA noted that formal employment is increasing at a strong pace, and stated that this, alongside an anticipated easing of inflation from Q2 2022, had improved the economic outlook for next year. The bank therefore raised its growth forecast for 2022 to 3.2% from 3.0%.