Mexico’s economy might follow that of its main trading partner, the United States, on the path to recession this year, with an impact on trade and remittances, the Bank of America (BofA) estimated on Friday.
Mexico’s gross domestic product (GDP) is expected to grow 0.3% in 2023, an improvement from the 0.5% contraction previously forecast, forecasts the private bank which also expects the he US economy recorded its first contraction in the second quarter of the year.
The main transmission channels of the slowdown in the United States might be remittances and trade, the bank added. Because the two countries’ manufacturing cycles are highly interconnected, Mexico’s imports of intermediate goods are slowing, a trend that will soon impact its exports, she said.
Mexico’s economy, the second largest in Latin America following Brazil, grew 3.1% in 2022, according to Bank of America estimates. It had risen 4.8% in 2021, following plunging 8.2% the previous year due to the novel coronavirus pandemic, the National Institute of Statistics and Geography said.
