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Investing.com -- Mexico’s central bank has reduced its 2025 economic growth forecast following a contraction in the third quarter that has sparked recession concerns for Latin America’s second-largest economy.
Banxico lowered its central scenario for 2025 GDP growth to 0.3% from its previous estimate of 0.6%, according to its quarterly inflation report. Despite the downward revision for the current year, the central bank maintained its growth projections of 1.1% for 2026 and 2% for 2027.
The economy shrank slightly in the third quarter, raising concerns that economic weakness may continue. Trade uncertainty appears to be a significant factor in the slowdown, with U.S. President Donald Trump’s tariff threats contributing to the challenging outlook.
Mexico faces growing worries about potential prolonged economic difficulties as it navigates both domestic challenges and external pressures from its largest trading partner.
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