Bank of Mexico Revises Economic Outlook Amid Inflation Concerns

The Bank of Mexico has revised its economic growth forecast for the year, lowering it to 0.3% from an earlier estimate of 0.6%. The quarterly report also indicated increased projections for average annual core inflation in the coming years, targeting stabilization by 2026.

The Bank of Mexico has adjusted its economic projections, reducing the expected growth rate for the nation's economy this year to 0.3%, down from an earlier forecast of 0.6% as outlined in their latest quarterly report.

In response to persistent inflationary trends, the bank also raised its outlook for average annual core inflation for the final quarter of 2025 and the initial half of 2026. Banxico, as the central bank is known, aims for both headline and core inflation to align with its targets by the third quarter of 2026.

This recalibration comes amid ongoing economic challenges, with the central bank continuing to navigate the balancing act between growth and inflation control.

(With inputs from agencies.)