The main factors behind Mexico’s sluggish economic growth in the first half of 2013 were weak external demand and a large contraction in public expenditures.
Looking into 2014, we expect the two drags – the US economy and public spending – to reverse and instead contribute positively to growth.
Higher Mexican economic growth will be supportive of the MXN.
Four main arguments favour our call on the MXN:
- US recovery
- Prudent macroeconomic policies
- Resilience towards China and commodity prices
- Reform progress
Read the full report: Market Research
Nordea