& Tobago


Very usefull links


News links




Dow Jones

Oil price



Views and News





Mexico's economy crashing 8% -Bank
of America

Carlos Jasso/Reuters

Currently, 29 people have died and 1,215 patients have been infected with coronavirus in Mexico.

- Country forecast to eventually lose investment grade rating
- Bank of America sees 4.5% recovery in 2021 amid U.S. rebound

By Justin Villamil/Bloomberg

Petroleumworld 04 03 2020

Bank of America is forecasting an 8% contraction in Mexico's economy this year, a far deeper slump than the so-called Tequila Crisis of the mid-1990s.

Plunging U.S. growth, a persistently lower oil price and the coronavirus pandemic will hammer Mexico's economy this year, economist Carlos Capistran wrote in a note on Thursday.

Bank of America cut its outlook from an earlier forecast for a 4.5% contraction. Even Capistran's new forecast isn't the most bearish. According to a Banxico survey, one unidentified economist is expecting an 11.25% slump this year.

Capistran said the nation faces further credit ratings downgrades and is “very likely” to eventually lose its investment grade status. He forecasts a primary deficit of 2% of GDP this year even after the government depletes its rainy day oil fund known as FEIP.

Read More: Mexico Gives Up on Primary Surplus Goal After Coronavirus Shock

A strong U.S. recovery will help the Mexican economy eventually rebound to 4.5% growth in 2021, Capistran said.

Capistran, who correctly predicted Mexico's stagnation last year, says the central bank will likely implement two more half percentage-point rate cuts this year, taking the policy rate to 5.5%. The first of these might come at an emergency meeting, before Banxico 's next scheduled meeting in May, he said.

President Andres Manuel Lopez Obrador has a rosier view and said Thursday that the impact of the coronavirus will be temporary.

“This is a transitory public health crisis, an economic one as well. A transitory crisis,” said Lopez Obrador in his morning press briefing Thursday. “That means that we're going to be out soon, that this isn't a debacle, that our strengths are much more than our weaknesses.”

— With assistance by Lorena Rios

Story by Justin Villamil from Bloomberg
04 02 2020



Editor & Publisher:Elio Ohep /
Contact Email:

CopyRight © 1999-2020, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2020, Petroleumworld ™  / Elio Ohep - All rights reserved



SThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.