MEXICO CITY (Reuters) – The IMF forecasts Mexico’s economy will grow only 1.5% this year, due to limited capacity and strict monetary policies.
Next year, growth is expected to dip to 1.3%, with inflation nearing the central bank’s 3% target.
Mexico’s central bank (Banxico) reduced its interest rate to 10.50% in September, suggesting more cuts may follow if inflation eases.
However, the IMF warns of potential risks to economic growth from weak U.S. performance, global uncertainty, and recent reforms.
In response to the IMF’s predictions, President Claudia Sheinbaum stated that Mexico’s economy remains strong and agricultural growth is anticipated for next year.
She also dismissed concerns about constitutional reforms affecting investment, despite the IMF’s warnings about uncertainties in contract enforcement and rule of law.
The ruling party recently passed a reform aimed at reducing judicial corruption through the election of judges, but it has met with backlash from trade partners and protests from the judiciary.
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