Mexico's budget draft shows that the government expects economic growth of at least 1.5% by 2025.

The Mexican government expects the economy to grow between 1.5% and 2.3 % this year. This is down from an earlier estimate of 2.0% - 3.0%.

Mexico's economy is expected to enter a recession, but the growth forecast by the finance ministry is more optimistic than the estimates of the private sector or the central bank.

The Finance Ministry forecasts economic growth between 1.5% and 2.5 % in 2026.

Latin America's No. The economy of Latin America's No. 2 was hit by a deterioration in investor confidence in recent months, U.S. Tariff threats, and a prolonged dry spell. It shrank again in the fourth and first quarters of this year. Mexico would be in a technical recession if the first quarter contracted.

In February, the Bank of Mexico autonomous forecast that the economy could contract by 0.2% or grow by 1.4% in 2025.

On Tuesday, the central bank of Mexico surveyed private sector analysts who lowered their forecasts for growth this year to only 0.5%.

The budget document used by legislators to plan their future expenditures also shows that Mexico's deficit will be between 3.9% to 4.0% in this year, before dropping to between 3.2% to 3.5% between 2026. (Reporting and writing by Anthony Esposito, Editing by Sarah Morland & Emily Green; Writing by Brendan O'Boyle)

(source: Reuters)