The International Monetary Fund (IMF) has released its latest report on global economic outlook, downgrading growth projections for Mexico for the third time this year. They warn that the country will face greater economic contraction next year due to a more restrictive fiscal policy, with lower public spending and fewer stimuli for the economy.
According to the report, the Mexican economy is expected to grow only 1.5% in 2024, which represents a decrease of 0.7 percentage points from previous forecasts. For 2025, the expected growth is even lower, standing at 1.3%, with a reduction of 0.3% compared to the previous report. The IMF highlights that this adjustment reflects a weakening in domestic demand due to tightening monetary policy in Mexico, negatively impacting economic growth.
Globally, economic growth forecasts remain stable, with a projected rate of 3.2% for 2024 and 2025. However, the IMF points out that global growth remains modest compared to pre-pandemic levels of Covid-19. Factors such as aging populations and low productivity in various economies continue to hinder potential long-term growth worldwide.
Regarding inflation, the IMF anticipates a gradual decrease in the coming years, dropping from 6.7% in 2023 to 5.8% in 2024 and reaching 4.3% in 2025. Advanced economies like the United States and Europe will more quickly approach their inflation targets, while emerging economies, like Mexico, will face greater difficulties in addressing this issue.
Finally, the IMF warns that risks to the global economy remain high, especially volatility in financial markets. Stricter conditions for obtaining financing could impact developing economies that rely on foreign capital to fund their growth.
