Mexico's Economic Resilience Amid Rising Risks

Mexico's economy remains solid despite increasing domestic financial risks, said central bank chief Victoria Rodriguez. The banking system's liquidity and capitalization exceed regulatory requirements. While internal financial risks have grown, including inflation and deteriorating public finances, stress tests show banks are prepared for adverse conditions.

Mexico's economic resilience remains steadfast, central bank chief Victoria Rodriguez announced in the country's financial stability report. Despite rising domestic financial risks, the banking system maintains liquidity and capitalization above regulatory benchmarks, according to the report.

Rodriguez highlighted that internal financial risks have grown, with notable concerns including deteriorating economic expectations, higher inflation, and worsening public finances. These factors have pushed the central bank to revise Mexico's growth forecast to near zero and adjust short-term inflation projections.

However, stress tests confirm the banking sector's capability to handle potential adverse situations, underscoring the financial system's robustness in facing global trade uncertainties.

(With inputs from agencies.)