Mexico City, Jun 1 (IANS): The Central Bank of Mexico (Banxico) has upgraded its economic growth forecast for 2023, but slightly lowered its projected growth for 2024 due to an expected slowdown in industrial activity in the US.

In presenting the bank's Quarterly Inflation Report, Banxico governor Victoria Rodriguez said the GDP could expand by 2.3 per cent this year, better than the 1.6-per cent expansion previously forecast, reports Xinhua news agency.

However, Rodriguez said Banxico expects the GDP to see just 1.6 per cent growth in 2024, a drop from the 1.8-per cent forecast a few months ago.

"The growth expectation for 2024 has been downgraded as a result of lower growth expected in industrial production in the United States," Rodriguez said.

According to the report, high inflation, while declining, still prevails globally and leads to a slowdown of the world economy.

The outlook for Mexico's economic growth is dimmed especially by the prospect of lower consumer demand should the US experience a deep and long-lasting recession, the report said.

The central bank expects the National Consumer Price Index to reach 4.7 per cent by the end of 2023 and then drop to 3.1 per cent by the end of 2024.

Mexico's economy, the second largest in Latin America after Brazil, grew 3 per cent in 2022, according to revised official figures.