[Síguenos ahora también en WhatsApp. Da clic aquí]
Moody’s on Tuesday halved its growth forecast for the Mexican economy for 2025 to 0.6% in light of the policies of the next US president. Donald Trumpwhich is on Monday announced 25 percent tariffs on all Mexican goods.
Moody’s Analytics forecast published in the report “Mexico faces economic consequences of Trump’s policies”That’s less than the 1.3% the agency estimated just Monday in an analysis of the Mexican government’s 2025 budget.
Meanwhile, a report on Tuesday forecast an increase gross domestic product (GDP) will be 1.3% by 2024.
“Economic weakness will worsen in 2025” “because the country’s negative trade gap will widen because U.S. tariffs will reduce demand for Mexican exports and because the U.S. economy will grow more slowly in 2025,” the report warns.
The forecast comes after Trump announced Monday that one of his first executive orders will be to impose 25% tariffs on “all goods” from Mexico and Canada until the invasion of illegal immigrants and drugs, especially fentanyl, is “stopped.”
In response, Mexican President Claudia Sheinbaum warned in a letter to Trump on Tuesday thate “for one tariff, another will come in response”and that “problems of migration and drug use will not be solved through threats or tariffs.”
Moody’s Analytics analysis is based on a scenario in which the United States imposes a 10% tariff on Mexican exports, and the country retaliates.in addition to the Mexican peso depreciating and inflation increasing due to higher import prices.
“Mexico will suffer both in its economy and in its financial market. The US policy that will cause the most serious negative consequences in Mexico is the following: regarding tariffs and immigration“, thoughtful.
Despite this scenario, the agency predicts that in 2026 the Mexican economy will show “a slight recovery, with growth of only 1.6%, mainly because depreciation of the peso will ensure some relief for exports.”
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.
