MEXICO CITY, May 28 (Xinhua) -- Mexico's central bank on Wednesday downgraded the country's economic growth forecast for 2025 from 0.6 percent to 0.1 percent, given the challenges posed by changes in the U.S. trade policy.
In its Quarterly Report, the central bank said that the U.S. government has imposed tariffs of varying magnitude on most goods imported into the United States, and that additional taxes are likely to be levied.
"There is uncertainty regarding the effects that these actions could have on Mexico's external demand," it said.
The variation in Mexico's GDP this year could range from a contraction of 0.5 percent to an expansion of 0.7 percent.
The bank said that its economic forecast takes into account "a limited impact" of the U.S. trade policy, given the resilience shown by Mexican exports and the preferential treatment of goods exported under the United States-Mexico-Canada Agreement.
"However, the widespread imposition of tariffs by the United States on its imports is expected to undermine the performance of its economy and, in turn, lead to lower external demand for Mexico," it warned.
Mexico's economy, the second largest in Latin America after Brazil, grew 1.4 percent in 2024, down from 3.3 percent the previous year, according to the latest official figures. ■
