(Reuters) – Mexico’s authorities forecast financial progress of three.4% for 2022, far beneath what the nation’s President was aiming for, a finance ministry doc confirmed on Friday, as Latin America’s second-largest financial system claws again losses from the COVID-19 pandemic.

The ministry stated in a printed funds doc that it expects the financial system to broaden by 3.5% in 2023.

“The persistent impacts of the pandemic on provide and demand imbalances, and the escalation of the geopolitical battle between Russia and Ukraine, have compelled nations to regulate their progress expectations for this yr,” the doc says.

The brand new determine compares to President Andres Manuel Lopez Obrador’s projection of 5% progress for the financial system in 2022 and a previous authorities forecast for a 4.1% growth. [nL1N2UD138]

The funds doc projected inflation at 5.5% by the tip of 2022, slowing to three.3% by the tip of 2023.

The alternate price is seen at 20.7 pesos per U.S greenback for the tip of 2022, and 20.9 pesos on the finish of 2023, the ministry stated, in contrast with 19.8 pesos on Friday.

Mexico expects this yr’s common oil worth shall be $92.90 per barrel, whereas crude manufacturing is estimated at 1.82 million barrels per day (bpd), rising to 1.85 million bpd in 2023.

The ministry expects a mean of 879,000 bpd of crude exports in 2022.

The nation will stay centered on selling financial growth and job creation by means of public spending, the doc stated, including spending wouldn’t “jeopardize the continuation and completion of key infrastructure works or precedence social packages.”