The Mexican economy will grow 2.5% this year, predicts the World Bank

The WB adjustment is similar to the new forecast of Grupo Financiero Monex last week.

However, by 2024, the national economy would lose strength and would only grow 1.9%, the agency warns.

Regarding Latin America and the Caribbean, the World Bank indicated that the region will grow just 1.5% this year, two tenths more than previously estimated, although it highlighted that consumer confidence has been clearing up and the prices of raw materials have have partially recovered.

Brazil, the largest economy in the region, will maintain very modest figures for the two years: 1.2% in 2023 and 1.4% in 2024.

The WB added that Argentina and Chile will suffer a drop of 2% and 0.8% respectively due to the drought that is hitting both nations.

The agency’s report places special emphasis on the extremely vulnerable situation of low-income countries, where fiscal conditions have worsened over the last decade.

Among the main problems in the region is the increase in public debt, the increasingly high risk of default and the devastating effects of the climate crisis.

In addition, the organization analyzes the consequences of the restrictive monetary policy of the United States in the emerging economies, and concludes that it is associated with negative effects and could even contribute to the emergence of a financial crisis in some countries.

With information from EFE