MEXICO CITY, Oct 6 (Reuters) - Ratings agency Fitch downgraded its growth forecast for Mexico on Thursday, lowering estimates for the expansion of Latin America’s second-largest economy in both 2016 and 2017.
Fitch expects 2016 growth to reach 2.0 percent, from an earlier forecast of 2.4 percent, and sees 2017 growth at 2.6 percent, from a previous estimate of 2.8 percent, the agency said in a statement.
The ratings agency said that the downward revision follows an 0.2 percent contraction in second quarter of this year.
“An accelerated reduction of oil production, the increase in the level of international volatility ... as well as lower industrial sector performance in the U.S. pose risks on the downside of this forecast,” the agency said. (Reporting by David Alire Garcia; Editing by Meredith Mazzilli)