How is Mexican industry doing? Our CEO visits his local industrial park to find out

How is Mexican industry doing? Our CEO visits his local industrial park to find out

Nearly every day the team at MND reports on business and economic activity in the country. I myself spend several hours a day reading and researching as well. So why is it that it is so hard to make sense of what’s really happening in the economy right now? Obviously the recent threats on tariffs from the Trump administration have not helped with the level of uncertainty, but the actual economic indicators are confusing as well. Let me explain. …

Mexico City.- The tariff war initiated by Donald Trump will bring damage to the Mexican economy as a possible loss of jobs and a substantial fall in production, warned Roman David Zarate, an economist in the International Trade and Integration Team of the World Bank's Research Group on Development (BM). "It is difficult to know when the recession will come or not, but of course we cannot deny that this will affect the Mexican economy and that it…

Regardless of whether or not they are applied on a long-term basis, an external factor such as Donald Trump's intermittent tariffs is affecting investors' confidence in Mexico, which could leave the country on the verge of a recession, the UBS investment bank warned, which reduced its estimate of growth for the Mexican economy from one to zero percent this year.

Analysts Warn of Mexican Recession as U.S. Tariff Threats Persist: 'This Quarter is Lost'

JPMorgan and Goldman Sachs estimate a 25%-31% chance of a U.S. recession, which would have immediate repercussions for Mexico, where 83% of exports rely on the U.S. economy.

The Swiss bank UBS reduced the growth forecast for Mexico by 2025 to 0 percent this Thursday, from a previous estimate of 1 percent, due to uncertainty resulting from the US tariff threat and the slowdown in investment.In its most recent report, the Swiss financial services firm noted that the Mexican economy faces a possible stagnation, which also opens the door to more aggressive cuts in interest rates by the Bank of Mexico (Banxico).

Banxico: Uncertainty clouds Mexico's economic horizon – El Financiero

Banco de Mexico (Banxico) Director of Economic Research Alejandrina Salcedo Cisneros said that uncertainty is having a widespread impact on the country's businesses, so the outlook points to a moderate expansion of regional economies.