The Bank of Mexico (Banxico) reported on Wednesday that it adjusted again its expectation for the country’s economic growth in 2025 to 0.1% from a previous 0.6% and cut in half the 2026, warning that the economy would continue to show atony in the forecast horizon.
Banxico maintained its expectation for the general inflation towards the end of the year and rose to 3.4% the underlying from a previous 3.3%, according to its quarterly report from January to March.
By 2026, Banxico said that his specific expectation of growth of the Gross Domestic Product (GDP) was reduced to 0.9% from 1.8% and pointed out that to the weakness shown by economic activity, the “significant challenges for the global economy” of the commercial policy change in the United States are added.
“At the moment, a 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% against 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 ad, the Bank of Mexico again reduced its key interest rate at a percentage half point to take it to 8.5% and reiterated that it could continue with similar magnitude adjustments.
With Reuters information.
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