Economic Growth Expectations for Mexico Lowered

The Organisation for Economic Co-operation and Development (OECD) has lowered its economic growth forecast for Mexico for 2024, placing it at 1.4%, down from the 2.2% projected in May.

Presenting its Economic Outlook, the OECD also reduced its projection for Mexico’s Gross Domestic Product (GDP) in 2025 to 1.2%, down from the previous estimate of 1.4%.

It’s worth noting that at the beginning of the year, the OECD had forecast a 2.5% GDP increase, reduced it to 2.2% in May, and now cut it further to 1.4% for this month. This figure is also lower than the 3% estimate provided by Mexico’s Ministry of Finance and Public Credit (SHCP).

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According to the OECD, the main reason for this reduction in growth projections is a slowdown in domestic consumption, which had previously been a driving force for growth and is expected to continue this trend until 2025.

Another factor contributing to the downward revision is the labor market, which “has slowed down” in countries such as Mexico and the United States.

In the case of the U.S., Mexico’s main trading partner, the international body left its growth projection unchanged at 2.6% for this year. However, for 2025, it anticipates a slowdown, forecasting a growth rate of 1.6%, down from the previous estimate of 1.8%.

Regarding global economic growth, Mathias Cormann, Secretary-General of the OECD, estimated a 3.2% expansion. “We expect global growth to remain resilient in 2024 and 2025,” he said.

Nota publicada originalmente en El Heraldo de México.