*Mexico’s central bank (Banxico) has released its quarterly report for the fourth quarter of 2024 in which it significantly reduced its 2025 GDP growth forecast to 0.6%, citing a range of -0.2%-1.4%. This is down from its previous forecast of 1.2%, when the range was 0.4%-2.0%. For 2026 however Banxico retained its GDP growth forecast of 1.8%. It highlights as factors for its changed GDP forecast for 2025, uncertainty due to internal and external factors, citing in particular, “possible changes of economic policy” by the new US administration led by President Donald Trump – a reference to tariff-related threats, among other changes. Banxico also said that it expects that annual inflation, which closed 2024 at 4.21% could take longer to reach its target of 3.0%, expecting it to reach this now in the third quarter of 2026, compared with the fourth quarter of 2025, as per its previous quarterly report.
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LatinNews Daily - 20 February 2025
In brief: Mexico’s central bank halves 2025 growth forecast
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