UN predicts Mexico's GDP to grow in 2015

New UN report forecasts Mexico to lead economic growth in the Latin America and Caribbean regions in 2015

New UN report forecasts Mexico to lead economic growth in the Latin America and Caribbean regions in 2015

MEXICO CITY - The growth of Mexico's GDP is expected to accelerate from 2.4 percent in 2014 to 3.5 percent in 2015, according to a UN report released Monday in Mexico City.

The promising outlook is a result of the benefits of structural reforms introduced in 2013 and 2014 and to the “strengthening of the United States,” said UN experts.

Luis Foncerrada, director of the Center for Economic Studies of the Private Sector, emphasized that the expectations will not be sufficient to address Mexico’s needs, especially in terms of job creation.

“Mexico must find a way to create formal and quality jobs,” Foncerrada said during the report’s presentation. He added that 7 million Mexicans are unemployed.

But other economist pointed to different problems as well.

Eduardo Loria, coordinator of the Center of Economic Forecasts of the National Autonomous University of Mexico, alleges that even if structural reforms are expected to increase the country’s economic growth this year, the decrease of public investment and the higher tax deficit risk will cloud projections. 

“The document seems to be very optimistic, but the reality of the country shows that much of these predictions are not happening,” he said.

The report predicts Mexico will lead the economic growth in Latin America and the Caribbean in 2015, while projecting more modest growth rates for Brazil and Argentina.

“Latin America and the Caribbean is projected to moderately improve from a meagre 1.3 percent in 2014 to 2.4 percent in 2015, albeit to varying degrees across countries and with significant risks to the downside,” it said.

A possible interest rate rise by the U.S, Federal Reserve is one of the most important preoccupations for the global economy, as there is a high risk that money will flow from the emergent country to the US, according to UN experts.

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