The Mexican Institute of Finance Executives (IMEF) has stated that Mexico’s economy is experiencing a phase of cautious expansion, which is expected to continue due to concerns over a potential recession in the United States.
IMEF predicts a “mini-recession” in the US in early 2024, leading to a growth rate of around 1.8 percent for Mexico in that year.
IMEF’s national president, José Domingo Figueroa, highlighted that Mexico’s Gross Domestic Product (GDP) is projected to grow slightly above 2.0 percent throughout 2023, based on the consensus among analysts.
However, the anticipated economic downturn in the US is expected to impact Mexico’s growth prospects in 2024.
While global GDP growth rates are positive, IMEF emphasized that they remain low in light of the development challenges faced by various regions worldwide.
Mexico has the opportunity to benefit from the relocation of global value chains, but Figueroa cautioned against overestimating the potential gains.
He noted that these investments are long-term and require time to yield benefits.
Furthermore, Figueroa stressed the importance of overcoming structural barriers that could hinder Mexico’s potential gains, such as limitations in generating efficient and clean electricity, water scarcity in certain regions, bureaucratic inefficiencies, logistics process improvements, and a robust rule of law.
In 2022, the Mexican economy, the second-largest in Latin America after Brazil, recorded a growth rate of 3.0 percent, as per revised official figures.