Bank of Mexico's Revised Growth Forecasts: A Signal to Brace for Economic Uncertainty

In a surprising move, the Bank of Mexico has slashed its growth forecasts for the country's economy for both this year and next. This decision, as outlined in their quarterly report, attributes the lowered expectations to sluggish domestic activity and uncertainties surrounding U.S. trade policy.

The central bank's revised forecast anticipates a meager GDP growth of just 0.1% for this year. This is a substantial downward revision from the previous estimate of 0.6% made in February. Such forecasts underscore the economic hurdles currently faced by Mexico, requiring urgent attention to prevent further downturns.

Additionally, the bank has halved its GDP growth prediction for 2026 to 0.9%, down from a prior forecast of 1.8%. The report warned of significant challenges for the global economy arising from U.S. trade policy changes, painting a grim picture for future domestic economic activity.

(With inputs from agencies.)