Banxico reduces its growth expectations for Mexico to 2.4%

The central bank highlighted that for this year, greater public spending is expected to boost domestic consumer spending in the following months. The entity expects that economic growth in the second semester will be lower due to typical behavior during the electoral season.

“However, there is high uncertainty about the magnitude of the possible effects of public spending on the performance of the economy in general,” he noted.

One of the main risks that the central bank highlights for the Mexican economy lies in investment spending being less than expected or insufficient to support the growth of the economy, especially in the long term.

Regarding inflation, Banxico’s estimates remained as presented in its most recent monetary policy decision: inflation will converge to the specific goal of 3% in the fourth quarter of 2025.

“The shocks that have affected inflation have been atypical and although several of their effects have been mitigated, the duration of others has been difficult to predict,” highlighted the central bank.

Regarding the creation of jobs with social security, the creation of between 510,000 and 670,000 jobs is expected before the Mexican Social Security Institute (IMSS).

Expectations from last February were between 580,000 and 760,000 jobs.

By 2025, Banxico’s expectations show that between 510,000 and 710,000 jobs will be created.