MEXICO CITY — The International Monetary Fund (IMF) has projected Mexico's economy to grow by just 1.2% in 2025, marking one of the lowest anticipated growth rates among major Latin American economies. This forecast, released this week, highlights mounting pressures from weakened global trade dynamics and supply chain disruptions affecting the manufacturing sector.
Analysts attribute the slowdown to reduced demand for Mexican exports, particularly from key partners like the United States and the Chinese mainland. Automotive and electronics industries — critical pillars of Mexico's economy — face dual challenges from declining orders and delayed raw material shipments amid ongoing geopolitical tensions.
"Mexico's deep integration into global value chains makes it vulnerable to external shocks," noted IMF Western Hemisphere Department Director Rodrigo Valdés during a virtual briefing. The report emphasizes the need for diversification strategies to mitigate reliance on international trade.
Business leaders in Mexico City express cautious optimism, with some shifting focus to domestic renewable energy projects and nearshoring opportunities. The IMF recommends accelerated infrastructure investments and trade agreement modernization to stimulate growth.
