MEXICO CITY (EFE).— The International Monetary Fund (IMF) warned this Tuesday that Mexico’s economy “slowed down”, now estimating a growth of 1.5% for 2024, seven tenths below the 2.2% expected in last July.
The announcement was made after a visit to the country in which the international organization also reduced the growth forecast for Mexico’s gross domestic product (GDP) to 1.3% for 2025, three tenths below the previous 1.6%.
“Activity is slowing down. “Despite an expansionary fiscal policy, growth is slowing to around 1.5% this year, in part due to binding capacity restrictions and a restrictive monetary policy,” the entity stated.
The IMF issued the preliminary report after concluding a mission in Mexico, where Claudia Sheinbaum assumed the presidency on October 1, as part of Article 4 of the organization to monitor the situation of countries that qualify for loans.
The document estimated that the country will be close to the Bank of Mexico’s (Banxico) goal of having a general inflation of 3% in 2025, although for this year it anticipated a rate of 4.5%.
“Risks for growth are biased to the downside while those to inflation are biased to the upside. Weaker-than-expected growth in the United States, an increase in global risk aversion, and unforeseen effects of (Mexico’s) institutional reforms could weigh on the result,” he explained.
The organization recommended to Claudia’s Government a medium-term fiscal strategy to reduce deficit and debt, increase tax revenues and create fiscal space for investments in human and physical capital.
Judicial alert
However, the IMF warned that judicial reform creates “significant uncertainties about the effectiveness of contract enforcement and the predictability of the rule of law.”
The report was published while Claudia met with 240 executives from companies in Mexico and the United States.
#economy #lagging #Mexico #experience #slowdown #rate
