The World Bank (WB) has revised Mexico’s economic growth forecast for 2025 downward from 1.3% to just 0.2%, citing rising global trade tensions and political uncertainty. According to the World Bank’s Global Economic Prospects report, Mexico’s economy is expected to grow by 1.1% in 2026. The report highlights that exports to the United States, which account for 80% of Mexico’s total exports, will be negatively impacted by tariffs implemented by U.S. President Donald Trump. Additional trade restrictions under a renegotiation of the USMCA could further reduce Mexico’s exports. The World Bank also noted that Mexico, the second-largest economy in Latin America, is among the hardest hit by a 25% tariff on U.S. imports not complying with the USMCA. For Latin America and the Caribbean, the World Bank forecasts stable growth at 2.3% in 2025 and 2.4% in 2026, though this represents a 0.2 percentage point downgrade. Global growth is projected at 2.3% for 2025, reflecting increased tariffs and uncertainty worldwide. To counteract these challenges, the World Bank suggests improving the business climate and promoting productive employment by equipping workers with necessary skills and fostering efficient labor markets. “— new from T21
