Bank of Mexico lowers 2024 growth forecast to 2.8%

The Bank of Mexico revised its forecast for economic growth this year to 2.8%, down from a prior view of 3.0%, citing lower-than-expected growth in the last quarter of 2023, according to the bank's quarterly report released Wednesday. Banxico, as the central bank is known, forecast 2025 growth at 1.5%, unchanged from its previous report.

The Bank of Mexico revised its forecast for economic growth this year to 2.8%, down from a prior view of 3.0%, citing lower-than-expected growth in the last quarter of 2023, according to the bank's quarterly report released Wednesday.

Banxico, as the central bank is known, forecast 2025 growth at 1.5%, unchanged from its previous report. Growth in 2024, an election year in Mexico, will get a boost from high public spending, the bank said, although its expectation was revised downward because of a slower growth in the final months of last year.

"Although the anticipated dynamics of economic activity in 2024 do not change significantly, the lower-than-expected growth in the last quarter of 2023 induces an arithmetic effect of a lower base of growth for 2024," the report said. In regards to inflation, Banxico slightly upwardly revised its forecasts for 2024 headline and core inflation to 3.5% each.