UPDATE 3-Mexico cuts 2014 growth forecast after surprisingly weak 3rd qtr

viernes 21 de noviembre de 2014 13:18 GYT
 

(Updates with growth forecast revision, central bank comment)

By Michael O'Boyle and Alexandra Alper

MEXICO CITY Nov 21 (Reuters) - Mexico's finance ministry cut its 2014 growth forecast on Friday after the economy grew unexpectedly slowly in the third quarter in a modest recovery that is now also threatened by rising social unrest.

Mexican gross domestic product expanded 0.5 percent in the third quarter from the second, the national statistics agency said on Friday, slowing from a downwardly revised 0.9 percent growth in the April-to-June period.

A Reuters poll had projected 0.7 percent growth.

The weak data is the latest blow to President Enrique Pena Nieto, who faces rising protests over the apparent massacre of 43 trainee teachers as well as a conflict-of-interest scandal over a lucrative rail contract.

The finance ministry said it now saw the economy growing between 2.1 and 2.6 percent in 2014, down from its previous 2.7 percent forecast. It is the second time this year the ministry has cut its outlook.

The revision is in line with analysts' projections for 2.3 percent growth this year.

Latin America's No. 2 economy has struggled to recover after shrinking last year in the second quarter. Weakness in domestic demand and uneven industrial output have dragged on the rebound.   Continuación...