According to the statement issued by the governor of the Bank of Mexico, Augustin Carstens, the country’s economy will go up by 3% in the existing year.

Augustin based his forecasting on the basis of 2.9% growth in the 3Q of last year as compared with the same quarter in 2008, as well as hopes of greater growth in manufacturing.

While talking to media, the governor said, “The third quarter was good and in the fourth quarter we are expecting substantial growth in aggregate demand.”

Due to the global financial crisis in 2009, the country’s economy is likely to contract by 6.5% to 7% from 2008.

Further, the central banker has released a note that the world would experience low inflation in 2010 and Mexico was also in such league because of a tax increase approved by the congress late last year.

However, the governor said, “Healthy government finances are essential to keep inflation at safe levels over the long term, and the tax plans would improve public finances.”

Earlier this week, the country recorded December’s inflation rate at 5.37%, the lowest December data in five years and a best performance in last 35 years.