Mexico predicts 2.5 pct GDP growth, stronger peso for 2017

The Mexican government is predicting the country will see 2.5 percent economic growth in 2017 and a somewhat stronger peso.

The federal 2017 budget proposal includes a projection of an exchange rate of 18.20 pesos to $1, which would be an improvement from Thursday's interbank rate of 18.54 to $1.

The Treasury Department projected an average per-barrel price for Mexico's crude oil of $42. That is above Thursday's $39.79 price for Mexico's market basket of crudes, but in line with coverage contracts Mexico has already purchased.

The department said inflation should run at about 3 percent in 2017.