NAFTA uncertainty to slow Mexican economy in 2018: IMF_Business_Asia Pacific Daily

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NAFTA uncertainty to slow Mexican economy in 2018: IMF

Business2017-11-14

The uncertainty over the North American Free Trade Agreement (NAFTA) will slow Mexico's economic growth rate to 1.9 percent in 2018, the International Monetary Fund (IMF) said Monday. The growth rate will see a slight slowdown next year, before an eventual resolution of the trade agreement allows the economy to pick up speed again, according to an IMF report released by Mexico's Finance Ministry and the Bank of Mexico. In 2017, Mexico's gross domestic product (GDP) is projected to grow 2.1 percent. Mexico's sound economic policies make it resilient enough to successfully weather uncertainties regarding its trade ties with the United States, the IMF said, citing flexible currency exchange regulations. Still, the agency recommended that Mexico should continue to implement structural reforms to spur economic growth. "Continued structural reforms, coupled with the potential modernization of NAFTA, could boost investment and growth," said IMF. Mexico and its NAFTA partners Canada and the United States are to hold a fifth round of talks on the trade deal later this month in Mexico City. U.S. President Donald Trump insisted the deal, signed in 1994, be renegotiated, claiming it unfairly benefits Mexico and harms U.S. industry. (ASIA PACIFIC DAILY)

The uncertainty over the North American Free Trade Agreement (NAFTA) will slow Mexico's economic growth rate to 1.9 percent in 2018, the International Monetary Fund (IMF) said Monday.

The growth rate will see a slight slowdown next year, before an eventual resolution of the trade agreement allows the economy to pick up speed again, according to an IMF report released by Mexico's Finance Ministry and the Bank of Mexico.

In 2017, Mexico's gross domestic product (GDP) is projected to grow 2.1 percent.

Mexico's sound economic policies make it resilient enough to successfully weather uncertainties regarding its trade ties with the United States, the IMF said, citing flexible currency exchange regulations.

Still, the agency recommended that Mexico should continue to implement structural reforms to spur economic growth.

"Continued structural reforms, coupled with the potential modernization of NAFTA, could boost investment and growth," said IMF.

Mexico and its NAFTA partners Canada and the United States are to hold a fifth round of talks on the trade deal later this month in Mexico City.

U.S. President Donald Trump insisted the deal, signed in 1994, be renegotiated, claiming it unfairly benefits Mexico and harms U.S. industry.

(ASIA PACIFIC DAILY)

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