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Latinnews Daily - 02 January 2018

In brief: Mexico

* Local economists polled by the local media have projected that Mexico’s domestic economy could grow by 2.5% this year, above the central bank’s forecast of 1.8%-2.3%. The economists’ consensus view is that the general election due in July this year will lead to a significant increase in government spending that will help to boost domestic economic activity this year. However, the economists warned that Mexico’s economy will face some significant downside risks this year including the continued uncertainty over the success over the renegotiations of the terms of the North American Free Trade Agreement (Nafta) and the negative impact on capital inflows into Mexico that could result from the recently approved tax reform in the US.

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