IMF predicts a slowdown in the economic growth of Mexico between 2024 and 2025

The International Monetary Fund said on Tuesday that it expects Mexico's economy to grow at around 1.5% in this year. It cited capacity constraints and a tight monetary policy.

The IMF stated in a press release that the growth rate is expected to slow down next year, reaching just 1.3%. At the same time, inflation is predicted to be close to the 3% target set by the central bank.

Banxico is the name of Mexico's central banking institution. In a split decision, Banxico lowered its benchmark rate in September to 10.50%.

Minutes of the Meeting

The board expects inflation to ease, allowing for more rate cuts.

The IMF warned that "inflation risks are still on the upside" and that a weaker than expected economic growth in the United States as well as increased global risk-aversion, along with unanticipated effects of recent reforms, could affect Mexico's production.

IMF stated that recent judicial reforms create "important uncertainty about the effectiveness of contractual enforcement and predictability of rule of law."

Mexico's ruling parties and allies

Reforms are being pushed through

Last month, the government argued that the implementation of the popular election for judges and magistrates would reduce corruption within the judiciary.

It has raised concerns among major trading partners such as the U.S.A. and Canada, and prompted protests by judges and magistrates.

(source: Reuters)