MEXICO CITY (30 / AGO / 2016) .- The possibility that the Mexican government further liberalization of gasoline prices from 2017 favor a reduction in fuel prices and lower impact on inflation, said economist HSBC Mexico chief, Alexis Milo.

According to the specialist, for a possible reduction in fuel prices in a scenario where the cost of gasoline is reduced by early next year and there is a strong demand from companies in Mexico to import fuel must be submitted.

"If the price is liberalized and also the import of gasoline is promoted by private, in addition to a seasonal slowdown that might arise in gasoline prices early next year, along with a recovery in the exchange rate we would expect that the set of all these conditions subtract gasoline pressures on prices, on inflation, "said HSBC economist.

According to Milo, the impact of recent increases in gasoline inflation has been lower as the consumer price index comes from many historically low.

In macroeconomic terms, HSBC maintains its growth forecast for the Mexican economy at 2.2% helped by a good performance of the domestic market in recent months.

However, towards the end of 2016 the main risk to the economy is underperforming manufacturing activity in the United States present.

"The biggest risk for the Mexican economy is a drop in manufacturing activity in the United States. Not so much in domestic demand because we expect consumption to remain robust. We expect domestic demand to continue to grow, probably at lower rates," he said.

In the coming months, HSBC expects the volatility of the exchange rate is maintained although there is the possibility of an appreciation of the peso against the dollar to remain unchanged monetary policy in the United States.

"What we have consensado with our strategists is that the exchange rate could be seen below 18 pesos by the end of this year. This also depends on many scenarios where the Federal Reserve of the United States does not raise rates, which mantedría favorable conditions for emerging markets, "he added.

In the same vein, the closing exchange rate in 2017 will also depend on whether elections in the United States have a favorable outcome for Mexico and that many of the factors that generate volatility in the international scenario is assimilated by the markets.

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Freeing petrol price would favor reducing their cost: HSBC

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