Banamex adjusts GDP growth for 2003.

MEXICO CITY, Aug 18, 2003 (Notimex/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- The financial group Banamex adjusted its GDP growth estimations from 1.8% to 1.6% for 2003 on Friday, reporting that the Mexican economy is breaking the negative trend observed in the previous two months.In its economic analysis, Banamex said that while economic growth was very favorable, the current growth dynamic must be adjusted to the new conditions of the external and domestic markets.Banamex said that both markets have registered adverse conditions implying a lower economic growth dynamic, such as the slow advance of the U.S.

manufacturing sectors, which impedes promoting a more accelerated export rhythm.Besides, the U.S.

import market is facing greater competition with actors whose exports are showing a greater growth dynamic, especially from China.Both elements have weakened the Mexico-United States link, directly affecting domestic production, which in the case of manufacturers has detonated an important production drop.Banamex warned that the low interest rate levels and lower inflation would be two of the important elements partially compensating the negative impact of employment lost in private consumption.

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