MEXICO CITY, Reuters The Bank of Mexico cut its forecast for economic growth this year and next, according to the central bank39;s quarterly report on Wednesday, citing weaker foreign manufacturing demand while inflation remains stubborn.

The central bank for Latin America39;s No. 2 economy now expects 2024 gross domestic product growth of 1.5, down from a previous forecast of 2.4, and 1.2 growth next year from a prior forecast of 1.5.

Banxico, as the central bank is known, said it had reduced this forecast due to weakerthanexpected secondquarter growth, noting external demand should remain soft due to expected weakness in U.S. manufacturing as well as fewer public infrastructure projects boosting domestic construction.

We expect the economy to keep growing in the coming quarters, though at a more moderate pace, bank Governor Victoria Rodriguez said on a call, saying that U.S. manufacturing should recover and help fuel growth next year.

Official statistics last week showed that Mexico39;s GDP expanded 0.2 in the second quarter from the previous three months, reinforcing a slowdown trend seen since late last year.

The monetary authority raised its inflation forecasts and said it sees the balance of risks regarding inflation as biased to the upside, after previously regarding this as balanced.

However, it maintained its forecast that both inflation metrics should converge toward its 3 target by the fourth quarter of next year.

For this year, Banxico edged up its…