IIF Cuts Mexico's Growth Forecast to 0.8%, Warns of Recession Risk

INSUBCONTINENT EXCLUSIVE:
for Mexico down to 0.8% from 1.5%, citing an imminent risk of recession.Following a visit to Mexico, IIF experts highlighted tariff threats
and their impact on trade and investment as key factors exacerbating an economic slowdown that began in late 2024.The IIF warned that
Without decisive policy changes, the institute estimates growth could hover around 1.7%.In a report led by IIF Chief Economist Marcello
Recession Risk
(Photo Internet reproduction)The report noted that neither fiscal nor monetary policies are well-positioned to stimulate growth
On the fiscal side, authorities aim to balance consolidation with flexibility to address deteriorating economic conditions.IIF Highlights
requires market-friendly policies to boost growth through trade, remittances, and investment flows
Yet challenges persist, including maintaining social programs introduced by the previous administration and supporting state oil company
fiscal consolidation
Pemex is unlikely in the short term, adding risks to growth and public finances
expects further reductions totaling 200 basis points this year, it urged caution
This is due to inflationary pressures in services, elevated inflation expectations, and potential capital outflows.The report underscores