Bank of Mexico Cuts 2025 Economic Growth Forecast to Just 0.1%
- The Bank of Mexico cut its 2025 economic growth forecast to 0.1%, citing sluggish domestic activity and external challenges in its first quarter report published in May 2025.
- This adjustment follows resilience in 2023 and 2024 but reflects downside risks related to the United States imposing tariffs on most imports and ongoing U.S. Protectionism affecting over 80% of Mexico's exports.
- Banxico has reduced its benchmark interest rate by half a percentage point so far this year to counteract economic challenges and inflationary pressures, while projecting a slow economic recovery ahead.
- Governor Victoria Rodríguez Ceja indicated that while economic growth is expected to be subdued, Mexico is unlikely to enter a recession, signaling a cautious approach to monetary policy amid ongoing risks.
- The revised forecast implies continued fragility in Mexico's economy requiring careful policy actions amid external pressures, with inflation expected to converge to the 3% target by the third quarter of 2026.
25 Articles
25 Articles
Bank of Mexico cuts 2025 economic growth forecast to just 0.1%
The Bank of Mexico (Banxico) has slashed its 2025 and 2026 growth forecasts for the Mexican economy, citing expectations of “sluggish” domestic activity and “significant challenges” related to U.S. protectionism. The central bank said in its first quarter report that is now forecasting growth of just 0.1% this year, down from a 0.6% prediction in its previous report. For 2026, Bank of Mexico cut its economic growth forecast to 0.9% from 1.8%. “D…
The Bank of Mexico Again Cuts Its Growth Forecast for the Mexican Economy and Puts It at 0.1% by 2025
The Bank of Mexico has again adjusted downwards its forecasts of economic growth in the country. The governor of the central bank, Victoria Rodríguez Ceja, reported on Wednesday that Mexico’s GDP is expected to grow only 0.1% in 2025, a figure lower than its previous forecast of 0.6%. By 2026, the forecast of GDP growth in Mexico also suffered a downward adjustment of 1.8% to 0.9%. The institution explains that domestic economic weakness adds to…
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