Mexico predicts slight economic slowdown in 2025-Xinhua

Mexico predicts slight economic slowdown in 2025

Source: Xinhua| 2024-03-28 10:02:30|Editor:

MEXICO CITY, March 27 (Xinhua) -- Mexico's economic growth could moderately slow down in 2025 due to reduced expansion in the United States and normalization in some subsectors in the service industry after the COVID-19 pandemic, the Finance Ministry said Wednesday.

Mexico's GDP is projected to grow between 2.5-3.5 percent in 2024 and between 2-3 percent in 2025, the ministry said when presenting the economic pre-criteria for 2025 to the Congress of the Union.

In 2023, its economy expanded by 3.2 percent, driven by increased private consumption thanks to employment and rising wages, said the ministry in a statement.

The economic activity will continue to grow in 2024 and 2025 with the support of domestic demand and the transformation of household consumption patterns with new global trends, particularly in technological and environmental matters, it added.

The moderation in the economic pace next year will be caused by the normalization of the performance of some service subsectors "with extraordinary performances" due to the reopening of activities after the passage of the COVID-19 pandemic.

The projected slow-down can also be induced by the decrease in accumulated household savings, as well as the lower growth forecast for the United States, Mexico's main business partner, impacting exports, tourism and remittance inflows, said the ministry.

Nevertheless, Mexico will benefit from the incorporation of a greater number of technological tools, benefiting from large-scale information processing and the profitability of numerous companies, it noted.