Mexico’s Treasury Department says it expects the economy to grow by 3.9 percent this year. That’s an improvement over its earlier prediction of 3 percent.

“Finally, growth predicted for the global economy as well as the recovery in formal employment that began in July 2009 allows for expectations that the recovery of external and internal demand will continue in 2010,” the ministry said. – Finance Minister of Mexico

The statement said the new forecast is in line with private estimates. The International Monetary Fund‘s latest forecast is for 4.0% growth this year and 4.7% in 2011.

However, the Finance Ministry cautioned that despite the “moderate optimism” about the economic outlook, “it remains necessary to deepen the broad agenda of structural reforms to build a more competitive economy, and achieve higher growth and job creation that will be sustainable in the medium-term.”