LatinNews Daily - 05 October 2026

*The International Monetary Fund (IMF) has concluded a staff-level Article IV Mission to Mexico, stating that “greater efforts” are needed to put debt on a declining trajectory, despite signs of fiscal consolidation. Following the visit, which took place from 7-15 September, the IMF noted that “efforts to strengthen public finances continued this year, although at a slower pace”, following a “sizable deficit reduction in 2025”. It said the draft 2027 budget entailed a more gradual consolidation than previously announced and an upward debt trajectory in coming years, concluding that, “a more ambitious and front-loaded consolidation should be considered to place debt firmly on a declining path and rebuild policy space.” The IMF also forecast GDP growth of 1.5% in 2026 and 1.8% in 2027, up from growth of just 0.5% in 2025. However, it noted that growth remained “constrained mainly by external uncertainty”, as well as those surrounding the US-Mexico-Canada Agreement (USMCA), which the US declined to extend in July, placing the deal in an annual cycle of reviews. It added that the disinflation process has continued, and headline inflation was near the central bank (Banxico)’s target of 3%, “although some underlying price pressures persist”. The IMF identified “boosting private investment by closing infrastructure gaps, reducing regulatory burdens and uncertainty, and strengthening trade integration, alongside sustained efforts to improve security, combat corruption, and lower informality” as key to raising potential growth.

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