Banxico cut its expectations in half and warned that the economy would expand moderately in the coming years.

The Bank of Mexico (Banxico) cut its estimate for growth of Mexico's Gross Domestic Product (GDP) for this year to 0.6% and acknowledged that there is a risk of an economic contraction. This forecast includes a downward adjustment from the 1.2% estimated in November.

According to the Governor of the Bank of Mexico, Victoria Rodríguez Ceja, this forecast does not yet include the impact that "the measures that the United States may announce in terms of trade" would have.

"The Mexican economy faces various challenges as it faces weakness due to internal aspects and uncertainty due to the change in United States policies that may change the configuration of value chains," he explained when presenting the Quarterly Report for the period from October to December 2024.

He predicted that the economy's performance this year will fluctuate between -0.2% and 1.4%, a lower range than the previous one, which was between 0.3% and 2%.

The central banker acknowledged that this adjustment in her growth forecast does not incorporate the measures that the US administration may announce in terms of trade, since they are not known. She acknowledged the high level of uncertainty that the market has shown regarding the change in policies that the US administration plans to implement.