OECD: Mexico's economy to grow at faster clip in 2014

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Mexican economy growth faster in 2014
Paris, May 30: Mexico's economy, which will experience slower growth in the first half of 2013 due to headwinds from the US, will have a stronger performance next year, the Organization for Economic Cooperation and Development, or OECD, said.

The new government's structural reforms in the areas of telecommunications, energy and budgeting will improve long-term growth prospects, the OECD said Wednesday.

Mexico's gross domestic product (GDP) will grow 3.4 percent this year, down from the 3.9 percent rate registered in 2012, and will post growth of 3.7 percent in 2014, the OECD said in its latest forecast.

Inflation is expected to come in at 3.4 percent this year, down from the 4.1 percent rate registered in 2012, and to fall to 3.2 percent next year, the international financial organization said.

Mexico's performance in coming months could be affected if the European sovereign debt crisis worsens or the economic recovery in the United States stalls, the OECD said.

The country's strong reserves and moderate inflation outlook provide officials with a solid foundation for taking action if necessary, the OECD said.

IANS

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