UPDATE 2-Mexico inflation outlook falls, growth up in poll

* Analysts see 2010 growth at 4.6 percent; was 4.5

* Analysts see 2010 inflation at 4.43 percent; was 4.59

* Mexicans abroad boost remittances in July
(Recasts, adds detail from survey)

MEXICO CITY, Sept 1 (BestGrowthStock) – Analysts pared their
forecasts for Mexican inflation this year and slightly raised
their 2010 growth outlook as economic weakness in the United
States is seen spreading to its southern neighbor.

The Mexican economy has for months limped away from a deep
recession but its fate is closely tied to that of the United
States which absorbs roughly 80 percent of Mexican exports and
where consumers are still reluctant to spend.

The consensus inflation forecast for 2010 fell to 4.43
percent in the latest monthly poll of economists conducted by
the central bank and released on Wednesday.

The July poll forecast an inflation rate of 4.59 percent.

Economists saw the economy growing 4.6 percent this year,
up from 4.5 percent growth forecast in July.

The Mexican economy shrank 6.5 percent in 2009 and while
analysts have now raised their expectations for 2010 growth
nine times they still expect the recovery will be slow.

Mexico last year faced its deepest economic contraction
since 1932 and policymakers slashed interest rates in early
2009 to help its economy resist a sharp slowdown.

While Brazil, Chile and Peru have hiked interest rates this
year to cool their economies, Mexico is not expected to tighten
the money supply until around the second quarter of next year.

Mexico’s annual inflation rate slowed for the fourth
straight month in July and this, combined with the analysts’
outlook, relaxes any pressure the central bank might feel to
increase lending rates.

While analysts tapped down their expectations for consumer
prices this year, they also lowered their outlook for 2011
inflation to 3.82 percent from 3.90 percent.

In a separate report, the central bank said that the amount
of cash sent home by Mexicans living abroad rose 1.84 percent
in July compared with the same month last year.

The official government outlook is for growth of 4.1
percent this year, although the finance minister has said that
could be raised to something closer to 5 percent. The central
bank has said it sees inflation between 4.75 and 5.25 percent.
(Reporting by Patrick Rucker; Editing by James Dalgleish)

UPDATE 2-Mexico inflation outlook falls, growth up in poll