UPDATE 2-Mexico's finmin sees recovery, discards impact from unrest

miércoles 5 de noviembre de 2014 23:48 GYT
 

(Adds details from protest march on students)

By Luis Rojas

MEXICO CITY Nov 5 (Reuters) - Mexico's finance minister said Latin America's No. 2 economy is recovering after a weak start to the year and recent social unrest triggered by the disappearance of 43 students had yet to hit growth.

Luis Videgaray said at an event in Mexico City on Wednesday that the economy had entered a "clear recovery phase" after a slow start to the year pushed the government to revise down its forecast for growth in 2014 to 2.7 percent from 3.9 percent.

On top of stronger exports, construction and public spending, "we have other indicators of the domestic market that indicate a recovery", the finance minister said.

Analysts expect Mexico's economy to grow around 2.5 percent this year after expanding 1.4 percent in 2013.

Mexico's central bank on Friday flagged the risk that social unrest could dampen the modest recovery, but Videgaray said so far he had not seen any "concrete sign of an impact" on growth from widespread demonstrations.

Protesters have taken to the streets in the past month since 43 students were abducted by police in southwest Mexico on Sept. 26. The search for the missing students has derailed President Enrique Pena Nieto's efforts to focus public attention on economic reforms.

"The most important thing now is the search for ... the missing youths and that the investigation continues in order for there to be justice," Videgaray said. "It is a fact that the perception of Mexico has changed."   Continuación...