Claudia Sheinbaum Challenges IMF's Economic Forecast for Mexico

Mexican President Claudia Sheinbaum contests the IMF's GDP contraction forecast, highlighting public spending as a buffer against economic challenges. Despite the IMF's prediction of a 2025 contraction, Sheinbaum emphasizes a domestic investment plan to safeguard the economy amid US-imposed tariffs and geopolitical tensions.

Mexican President Claudia Sheinbaum has rejected the International Monetary Fund's (IMF) projection of an economic contraction, arguing that increased public spending will protect the country's economy. The IMF has revised its forecast, citing US tariffs and geopolitical tensions as contributors to a potential 0.3% GDP decline in 2025.

Sheinbaum, speaking at a press conference, expressed confidence in Mexico's internal economic strategies. She believes that the government's models, which differ from the IMF's prediction, anticipate positive economic growth. She underscored 'Plan Mexico,' an initiative designed to boost domestic industry amid challenging international conditions.

Despite the IMF's assessment, the Mexican government has projected economic growth between 1.5% and 2.3% for the current year. The nation's economy has faced hurdles, including tariff threats, a cooling investment climate, and a recent drought, pushing it towards a technical recession. Preliminary data suggests continued economic strain, with further contractions reported in early 2025.

(With inputs from agencies.)