Banxico Slashes 2026 Mexico Growth Forecast Amid Trade Uncertainty
The Bank of Mexico has reduced its growth forecast for Mexico's economy to 1.1% for 2026, citing weaker-than-expected performance and trade uncertainties. The adjustment, down from a previous estimate of 1.6%, highlights concerns over investment levels and the impact of US-Mexico trade relations and USMCA agreements.
Devdiscourse News Desk | (Adds Details From Report) Mexico City | Updated: 28-05-2026 00:37 IST | Created: 28-05-2026 00:37 IST
In a notable adjustment, the Bank of Mexico has lowered its growth forecast for the country's 2026 economy from 1.6% to 1.1%. This decline reflects a significantly weaker performance in the year's first quarter.
The central bank, known as Banxico, has expressed concerns over sustained investment weakness, attributing it to uncertainties surrounding trade relations with the United States and the upcoming review of the USMCA agreement.
Despite this cautious outlook, Banxico maintains its 2027 growth prediction at 2.1% and has left inflation projections for the end of 2026 unchanged, with expectations that headline and core rates will remain at 3.5% and 3.4% respectively.
(With inputs from agencies.)
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