Moody’s predicted this Wednesday that The Mexican economy will grow by 2.3% in 2024. This is “slower” growth than the projected 3.5% in 2023.
“We expect economic growth to slow in the main Latin American economies of Brazil and Mexico in 2024 due to “the delayed effect of monetary policy adjustment and the expected slowdown in US economic growth”This is stated in a message from Moody’s Investor Service.
The rating agency considered that Mexico ‘will continue to benefit’ chain movement phenomenon “approximation”.
But he warned that “investment prospects may be affected by concerns about infrastructure opportunities in general and opportunities in the energy sector in particular.”
The report notes that only one 24% of energy production in Mexico comes from renewable sources, below 36% in Argentina and 88% in Brazil.
He also noted that “political noise and growing budget risks” increased the difference between interest and government income in Mexico.
And he warned that Fiscal consolidation will not be enough to stabilize debt level in the next two to three years.
Photo: Cuartoscuro Archive
“Most countries, including Brazil, Colombia, Costa Rica and Mexico, have very rigid cost structures that limits your ability to cut costs and achieve the fiscal consolidation needed to stabilize debt levels,” Moody’s said.
The National Institute of Statistics and Geography (Inegi) will publish its first timely estimate of gross domestic product (GDP) growth Mexico, where annual growth was 3.4% through the third quarter of 2023, following a 3.9% increase in 2022.
Last Friday, President Andrés Manuel López Obrador predicted growth by 3.5% both for 2023 and 2024.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
