World Bank: High interest rates will limit Mexico’s economic growth

MEXICO CITY.- This Tuesday, according to estimates from the world Bank (BM), the high interest rates will limit the Mexico’s economic growth which will be able to move forward this year and next according to plan.

The body he presides over Ajay Bangdid not modify its forecasts for the Mexican economy of 2024 and 2025 in the update of its economic outlook which was announced this day.

However, the budget for 2026 was cut from 2.6% last April to 2%, that is, for the second year of the new government headed by Claudia Sheinbaum.

World Bank projections for the new government

Mexico’s projected growth will slow to 2.3% in 2024, which is the same estimate it had predicted in its April report, when it was cut back.

For the following year, it maintained 2.1% for the second consecutive year, according to the document entitled “Global growth stabilizes for the first time in three years.”

The reason the agency decided not to change its projections for Mexico is that it will be limited by a restrictive monetary policy, despite the expected drop in inflation and interest rates.

Mexico, the country with the greatest growth in Latin America

According to World Bank projections, Mexico will not grow further, but it will do so above the Latin American average.

For the region as a whole, growth is expected to reach 1.8% in 2024, before rebounding to 2.7% in 2025 as interest rates normalise and inflation declines.

Commodity prices will support Latin American exports, although weak Chinese growth might limit demand for key commodities, the document said.

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