Analysts reduce growth forecasts for Mexico.

MEXICO CITY, May 28, 2003 (El Universal/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- The lack of structural reforms and the weakness in the domestic market have forced the main brokerage houses and banks to reduce their outlooks for the Mexican economy and forecast average GDP growth of 2.2% for 2003, instead of the 2.5% established in previous projections.Raymundo L?pez, economist at the consultancy Burs?metrica, said that ahead of the lack of reforms to attract investments and generate jobs, the economy is limited. He said that during the last few days there have been announcements that could boost the domestic market, but there is no program yet to define the lines to follow in consumption, demand and spending.Merrill Lynch also reported a downward change in its forecast for Mexican economic growth, from 2.3% to 1.9% for 2003 as a result of the lower GDP growth registered in the first quarter. It also considered that Mexican private consumption is still weak and the U.S. industrial activity is dropping.Merrill Lynch reduced its inflation forecast from 4% to 3.8% after perceiving lower pressure on prices due to the efforts of the Bank of Mexico and in recognition of the monetary policy.This article has been translated by Internet Securities, Inc. as a service to its customers. Internet Securities, Inc. makes no representation or warranty regarding the accuracy or content of the translation.

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