IMF Forecasts Slower Growth for Mexico's Economy

The IMF projects Mexico's economic growth to slow to 1.5% this year due to capacity limits and tight monetary policy, with a further decrease to 1.3% in 2024. Inflation is expected to align with the central bank's target of 3%.

The International Monetary Fund (IMF) has revised its economic outlook for Mexico, projecting a slowdown in growth to approximately 1.5% for the current year. This cautious forecast arises from observed capacity constraints and a stringent monetary policy framework in the country.

Looking ahead, the IMF expects growth to decelerate further in 2024, estimating it will reach just 1.3%. This forecast pertains to Mexico, Latin America's second-largest economy, where government and market players are closely monitoring financial health indicators.

Despite the economic slowdown, the IMF remains optimistic about inflation rates moving closer to the central bank's target of 3%, indicating a more stable financial environment though growth remains a concern.

(With inputs from agencies.)