Banxico, the central bank of Mexico, on Wednesday reduced its economic growth forecast for 2019 to a range between 1.1 and 2.1 per cent from the previous projection of 1.7-2.7 per cent.
The central bank also lowered its economic expectations for 2020 to a range between 1.7 and 2.7 per cent, from 2.0-3.0 per cent.
Banxico explained that the reduction for this year is due to various factors, such as a more marked loss of dynamism in global economic activity, reports Xinhua.
In the domestic sphere, during the second half of 2018, especially at the end of the year, a more pronounced slowdown was observed than estimate in the previous report, Banxico said.
"This led to a lower level of GDP (gross domestic product) growth at the end of 2018, which in turn generated a lower base for growth in 2019," the central bank said in its latest report.
Banxico's report was published after the National Institute of Statistics and Geography reported on Monday that the country’s GDP grew 2.0 per cent in 2018, a figure slightly lower than that of 2.1 per cent in 2017.
Various indicators of domestic demand at the end of 2018 suggest that the slowdown could continue at the beginning of 2019, according to the lender.
In the past weeks, some financial organisations and institutions have cut their growth forecasts for the North American country due to domestic and external uncertainty.
According to estimates from the Mexican government, the country's economy could grow between 1.5 and 2.5 per cent in 2019.