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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.
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elsiglodetorreon.com.mx broke the news in on Wednesday, May 28, 2025.
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