In market exchange rate terms, the downturn is sharper – global GDP is projected to actually shrink by 0.6 per cent. With all the advanced economies – the United States, Europe and Japan – having firmly gone into recession, the contagion of the crisis from the financial sector to the real sector has been unforgiving and total.
The Bank of Mexico forecasts growth of 1.7 to 2.5 percent this year, and 2.5 to 3.5 percent in 2016. 8 Downside risks to growth likely predominate. These include further reductions in oil extraction, less robust-than-expected U.S. industrial production, and continued fragile consumer and producer sentiment. Structural reforms currently underway in Mexico could enhance long-term productivity growth.