Mexico’s Economy Grows 1.2% by Year-End
Bank of America has projected that the Mexican economy will grow by 1.2% this year, which they consider a moderate recovery compared to the stagnation that characterized economic performance last year.
Carlos Capistrán, the chief economist for Latin America and Canada at the institution, stated during the presentation of economic prospects that exports were a crucial factor in preventing the Mexican economy from falling into a recession last year, as they recorded real growth of over 5%, despite fluctuations related to tariffs and trade tensions.
He added that this year’s economic outlook suggests the possibility of continued dynamism in exports, supported by expectations of growth in the U.S. economy, which could positively impact economic activity in Mexico.
In his long-term assessment, Capistrán noted that the weak growth in Mexico represents a chronic structural problem, pointing out that GDP per capita has shown little growth over the past decade, amid a cumulative decline in productivity factors approaching 8%.
Regarding the trade agreement between Mexico, the United States, and Canada, the official anticipated that it would continue, but with the likelihood of frequent revisions that may keep uncertainty alive among economic actors.
He emphasized that any significant decline in this agreement would strongly impact the Mexican economy, highlighting that over 80% of Mexico’s trade is linked to the U.S. market, making the stability of trade relations a critical factor in growth prospects.
