Mexico’s economic growth forecast has been revised downward by major international organizations, including the World Bank (WB), the OECD, and the IMF, amid ongoing trade uncertainties and tariff policies initiated by former U.S. President Donald Trump. The WB predicts Mexico’s GDP growth at just 0.2% for 2025, with a slight recovery to 1.1% in 2026. Similarly, the OECD forecasts growth at 0.4%, while the IMF anticipates a recession of -0.3% for 2025. High inflation and tariff-related disruptions in global supply chains are cited as key factors undermining growth. In May, Mexico’s annual inflation rate reached 4.42%, its highest in six months. Analysts suggest that resolving trade disputes and fostering international agreements could improve prospects. Mexican Economy Secretary Marcelo Ebrard has announced progress in negotiations with U.S. officials to address these challenges under the USMCA framework.
— new from FXStreet
