IMF: Mexico’s economy to slow to 1.5% in 2024, 1.3% in 2025

The International Monetary Fund (IMF) said on Tuesday it expects Mexico’s economic growth is slowing to around 1.5 per cent this year, partly due to binding capacity constraints and a tight monetary policy stance.

In a staff concluding statement, IMF expects the Latin American country’s growth slowing to 1.3 per cent next year, when inflation is also seen closing in on the central bank’s target of 3 per cent.

“… inflation risks remain on the upside.” IMF said, warning that “Weaker-than-expected growth in the US, an increase in global risk aversion, and unforeseen effects from recent institutional reforms could weigh on (Mexico’s) output.”

“A medium-term fiscal strategy is needed to reduce deficits and debt, raise tax revenues, and create fiscal space for investments in human and physical capital.

Attribution: IMF