MEXICO CITY, Jan. 21 (Xinhua) -- Mexico's economy will rebound in 2026, growing by 1.1 percent from very low levels. However, the growth will still fall below the historical average, Gabriel Cuadra, deputy governor of the Bank of Mexico, said Wednesday.
Speaking at a business event of the Banorte Financial Group, one of Mexico's leading banks, Cuadra said Mexico's GDP is likely to rise by 0.3 percent in 2025, down from 1.4 percent in 2024 and 3.1 percent in 2023.
Between 2000 and 2019, just before the pandemic, Mexico's economy grew by an average of nearly 2 percent annually, he noted.
"Consequently, performance of economic activity would be clearly below the average annual growth rate for this century," he said.
The economic stagnation is expected to alleviate the upward trend of inflation, especially in the service sector, where inflation has been gradually declining in recent months, added Cuadra.
Cuadra noted that the increase in core inflation observed in 2025 was primarily attributable to temporary spikes in goods prices.
Since August 2024, the bank has been lowering the benchmark interest rate in accordance with Mexico's economic performance. ■