Mexico’s economic growth estimated at four-five percent

According to the Bank of Mexico, the country´s gross domestic product will increase in the range of four percent to five percent this year, up from earlier forecasts from 3.8 percent to 4.8 percent.

The projected 2012 growth for GDP remains at 3.8 percent to 4.8 percent, the central bank announced.

“Both the recent performance of the economy, as well as its main determinants, suggest that there could be higher GDP growth in Mexico in 2011 than forecast in the previous report on inflation,” according to the Bank.

Rising industrial production in the US and stronger consumer demand in Mexico in the first quarter are among the positive factors pointing to more robust economic growth, the central bank said, adding that the economy will create between 600,000 and 700,000 jobs per annum in 2011 and 2012 if it grows at the projected levels.

Rising consumer demand could translate into higher imports, with the balance of trade deficit projected at $5.7 billion and the current account deficit forecast to hit $11.3 billion this year, putting both indicators well above the 2010 level, the central bank said.

Inflation is expected to be in the range of three percent to four percent this year, well within the central bank’s target of three percent, plus or minus one percentage point.