Particle.news
Download on the App Store

Banxico Cuts Mexico’s 2025 Growth Forecast to 0.3% After Q3 Slump

The bank leaves its 2026–27 outlook intact under stable USMCA assumptions.

Overview

  • Mexico’s central bank lowered its 2025 GDP projection from 0.6% to 0.3% in its July–September Quarterly Report, citing a deeper-than-expected third‑quarter contraction.
  • Governor Victoria Rodríguez Ceja said the bank does not anticipate a further decline in output in the fourth quarter.
  • Banxico maintained a 1.1% growth estimate for 2026 and projects 2.0% for 2027, contingent on unchanged trade relations within the USMCA.
  • The outlook highlights persistent investment weakness at least through the second half of 2026, alongside firmer private consumption and only moderate export gains tied to U.S. industrial activity.
  • The report underscores elevated global uncertainty from geopolitical and trade-policy shifts and calls for fiscal discipline, a well-capitalized financial system, and sustainable external accounts.