MEXICO CITY, Feb. 19 (Xinhua) -- The Bank of Mexico (Banxico) lowered its 2025 economic growth forecast to 0.6 percent from 1.2 percent in its fourth-quarter 2024 Inflation Report released Wednesday, citing uncertainty over policies under the new U.S. administration.
"Private consumption and, in particular, private investment would show limited momentum due to persistent uncertainty," said the report, predicting weak economic activity in 2025.
For 2026, Mexico's economy is projected to grow 1.8 percent, unchanged from the previous forecast.
It said the outlook remains uncertain, as the new U.S. administration has introduced immigration, trade and other policies whose full impact is unclear.
The main risk, it warned, is a further escalation of uncertainty over U.S. policies, particularly in trade, or domestic factors. This could weaken external demand and dampen consumer spending and investment in Mexico.
According to official data, as the second-largest economy in Latin America, Mexico's GDP grew last year by less than half of the 3.3 percent growth reported in 2023.
