Saturday, August 23, 2025

Banxico survey lowers GDP growth forecast to 1.12% in 2025

Experts polled by the Bank of Mexico (Banxico) on Monday revised their GDP growth estimate for 2024 from 1.53% to 1.60%, while lowering the growth forecast for 2025 from 1.20% to 1.12%. 

The estimates are based on results from a survey of 41 private sector specialists. While GDP growth is expected to fall in 2025, they predict it will increase to 1.8% in 2026. 

The slowdown in manufacturing activity came as Mexico seeks to bolster the sector by attracting foreign investment amid the nearshoring trend.
The lower growth outlook for 2025 results from several concerns including political uncertainty — both within Mexico and abroad. (Juan José Estrada Serafín/Cuartoscuro)

The exchange rate

The survey provided several other financial outlooks. The analysts expect to close 2024 with an exchange rate of 20.25 pesos to the United States dollar. They reduced the rate outlook for 2025, from 20.59 to 20.53 pesos, and in 2026, from 21.23 to 21.00 pesos. 

Inflation forecast

The analysts see inflation falling slightly by the end of 2024, from 4.42% to 4.37% for annual headline inflation and 3.69% to 3.6% for underlying inflation. This excludes the prices of volatile goods and services, including agricultural products, energy and government tariffs. 

In 2025, the group anticipates headline inflation will average 3.8% and underlying inflation 3.72%, and in 2026, 3.7% and 3.6%, respectively. While some improvement is expected, projected inflation remains higher than the Banxico target of 3%.

Will the business climate improve or deteriorate?

When asked about the business climate in the next six months, 77% of those surveyed expected it to “get worse,” a slight improvement on the previous response rate of 79%. Meanwhile, 13% predicted it would “stay the same” and 10% said it would “improve.”  

A slight majority — 59% of respondents — said it was a “bad time” to invest in Mexico, compared to 68% in the previous survey; 33% said they were “not sure” and 8% believed it was a “good time.” 

Economy Minister Marcelo Ebrard referred to several investment announcements for 2025 in his speech that are neither new nor completely certain.
Economy Minister Marcelo Ebrard said recently that FDI in Mexico had reached 35.7 billion dollars through Q3 of 2024. (Andrea Murcia/Cuartoscuro)

FDI outlook

The anticipated foreign direct investment (FDI) for 2024 was revised downwards from previous estimates, from US $37.13 billion to $36.51 billion, which would still be slightly above last year’s sum of $36.06 billion.  

The analysts highlighted several factors impeding Mexico’s economic growth over the next six months: 48% thought governance would hinder growth, 21% mentioned internal economic conditions and 18% said external conditions. 

They also emphasized public insecurity (17%), internal political uncertainty (15%), problems related to the lack of rule of law (11%) and the internal economic situation (9%).

Earlier forecast reductions

In October, the International Monetary Fund (IMF) lowered its 2024 economic growth forecast for Mexico to 1.5% while projecting even slower growth in 2025, citing capacity limitations and a restrictive monetary policy. 

The World Bank also reduced its economic growth forecasts for Mexico for this year and the next two, citing uncertainty for investors among the reasons for its more pessimistic outlook. 

With reports from El Financiero, Alto Nivel and Forbes

6 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
five people standing in a row

Over 30,000 new street cameras will make CDMX the most monitored city in the Americas

0
The new cameras will increase the city's total by 36% and include state-of-the-art smart poles with a 360-degree view.
border building in Guatemala with a welcome sign

Guatemala grants humanitarian visas to 161 Mexicans who fled organized crime

0
Reversing the usual northbound migration route, the refugees fled a cartel war in their home state of Chiapas.
Kirsti Noem painting the border wall

Paint it black: Trump’s new security measure for the Mexico-US border wall

15
The idea behind the new measure — proposed and scuttled during Turmp's first term — is that the black color will absorb heat and make the wall too hot to climb.
BETA Version - Powered by Perplexity