The economy shows slightly better performance than expected at the beginning of the year, according to the latest Banxico survey, but the overall outlook is pessimistic, with the economy practically stagnant and significant challenges regarding inflation.
Experts consulted in the monthly survey have again lowered their forecasts for Gross Domestic Product (GDP) growth, now estimating a growth of 0.22% for this year, compared to the 0.41% estimated the previous month. This downward revision comes amid the tensions caused by President Trump's tariff policies.
In contrast, private sector specialists have raised their forecasts for inflation, from an estimated 3.72% in March to 3.82% for April. Despite this, Banxico is expected to continue its cycle of cuts, thus reflecting the low expectation of economic growth.
Additionally, the survey reveals a lower likelihood of attracting foreign investment. Although the government has announced several foreign investment projects, such as Unilever under the Mexico Plan, experts are less optimistic. They have decreased their expectations for Foreign Direct Investment (FDI) both for this year and next, from $35 billion to $33.850 billion for the end of this year, and from $39.646 billion to $38 billion for next year.
