Bank of Mexico Revises Economic Growth Forecast Amid U.S. Tensions

The Bank of Mexico has revised its forecast for economic growth, predicting a 1.8% increase in GDP for 2024. This uptick is attributed to better-than-expected growth in the third quarter. However, recent tensions with the U.S. post-Trump's election could impact future economic stability.

The Bank of Mexico, known as Banxico, has slightly revised its economic growth forecast for the upcoming years. According to its quarterly report, the central bank now anticipates a 1.8% growth in GDP for 2024, an increase from the previous 1.5% forecast, while maintaining the 2025 projection at 1.2%.

This revised forecast comes following a better-than-expected performance in the third quarter, despite expectations of reduced private investment due to heightened uncertainties from both domestic and international fronts. Recent tensions between Mexico and the United States, especially after Donald Trump's election, could further challenge economic stability.

Banxico has also kept its 2025 inflation estimate at 3.0%, but adjusted its forecast for this year's final quarter's average annual inflation to 4.7%, up from the earlier 4.4% estimate. The central bank stresses a moderate growth trajectory for Mexico's economy in the coming years.

(With inputs from agencies.)