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IMF Keeps Mexico’s 2026 Growth at 1.5%, Cuts 2025 Outlook and Flags Global Risks

Mexico’s outlook hinges on U.S. spillovers.

Overview

  • The IMF’s January update leaves Mexico’s 2026 growth projection unchanged at 1.5%, lowers 2025 to 0.6% from 1.0%, and nudges 2027 up to 2.1% from 2.0%.
  • Global growth is projected at 3.3% in 2026 and 3.2% in 2027, with Latin America seen at 2.2% in 2026 and rebounding to 2.7% in 2027.
  • The IMF highlights four downside risks: disappointing productivity from AI investments, escalating trade-policy frictions, geopolitical conflicts, and mounting public-debt vulnerabilities.
  • The report notes Mexico’s performance is closely tied to the United States and sensitive to technology-driven investment cycles that could amplify external shocks.
  • Policy guidance stresses rebuilding fiscal buffers, safeguarding price and financial stability, reducing uncertainty, and advancing structural reforms, alongside a gradual but uneven global disinflation path.