The Central Bank of Mexico (Banxico) reported that it adjusted again its expectation for the country’s economic growth in 2025 to 0.1% from 0.6% previous and cut in half the 2026, warning that the economy would continue to show atony on the forecast horizon.
The bank maintained its expectation for the general inflation towards the end of the year 3.3% and the underlying from a previous 3.3% rose to 3.4%, according to its quarterly report from January to March.
By 2026, Banxico said that his specific expectation of Gross Domestic Product growth was reduced to 0.9% from 1.8% And he pointed out that the weakness shown by economic activity is added the “significant challenges for the global economy” of commercial policy change in the United States.
“At the moment, an limited effect is incorporated,” he said in his report. “However, it is anticipated that the widespread imposition of tariffs by the United States to its imports the performance of its economy and that, in turn, it derives in lower external demand for Mexico,” he added.
The economy of Mexico presented a weak growth in the first quarter and advanced a marginal 0.2% compared to the previous quarter, Increasing the bets that the Central Bank will continue to cut its key rate despite the fact that inflation rebounded slightly and exceeds the official goal of 3% +/- a percentage point.
In its most recent monetary policy announcement, The Bank of Mexico again reduced its key interest rate at a percentage point to take it to 8.5% and reiterated that he could continue with similar magnitude adjustments.
