Mexico Cuts 2025 Growth Outlook Amid U.S. Trade Policies
(MENAFN) Mexico’s central bank sharply cut its economic growth outlook for 2025, lowering the forecast from 0.6% to a mere 0.1%, as the country faces mounting risks from shifts in U.S. trade policies.
In its Quarterly Report, the bank highlighted that the U.S. has implemented tariffs of varying levels on the majority of imported goods, with the prospect of further taxes looming.
In its Quarterly Report, the bank highlighted that the U.S. has implemented tariffs of varying levels on the majority of imported goods, with the prospect of further taxes looming.
"There is uncertainty regarding the effects that these actions could have on Mexico's external demand," it stated.
For 2024, Mexico’s GDP could fluctuate between a contraction of 0.5% and a modest expansion of 0.7%.
The central bank’s projections factor in what it describes as a "limited impact" from the U.S. trade measures, citing the robust performance of Mexican exports and benefits from the United States-Mexico-Canada Agreement’s preferential treatment.
"However, the widespread imposition of tariffs by the United States on its imports is expected to undermine the performance of its economy and, in turn, lead to lower external demand for Mexico," the report warned.
As Latin America’s second-largest economy after Brazil, Mexico’s growth slowed to 1.4% in 2024, down significantly from 3.3% in the previous year, official data show.
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