IMF cuts Mexico’s 2025 growth forecast amid global challenges

In its November 2025 World Economic Outlook, the International Monetary Fund trimmed its GDP growth forecast for Mexico next year, projecting minimal expansion amid persistent global headwinds.

Global Headwinds Weighing on Mexico

Mexico’s economy relies heavily on exports and foreign investment. Shifts in global demand and tighter financial conditions have created uncertainty for manufacturers, farmers, and service providers across the country.

Key Challenges

  • Tighter financing: Central banks in major economies have kept borrowing costs high to tackle inflation, raising funding expenses for Mexican businesses.
  • Trade disruptions: Supply chain bottlenecks and geopolitical frictions have slowed the flow of goods, impacting port activity and production.
  • Cooling external demand: Some of Mexico’s top trading partners have reported slower growth this year, reducing export revenues.

Resilience and Opportunities

Despite these headwinds, domestic consumption and remittances have supported activity. Young entrepreneurs in Mexico City’s tech and renewable energy sectors are adapting by exploring new markets and digital solutions.

Looking ahead, any rebound in global trade or easing of geopolitical tensions could help Mexico regain momentum. Policymakers and investors will be watching international indicators closely as the country navigates this challenging period.

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