Tuesday, 02 January 2024 12:17 GMT

U.S. Tariffs Threaten Global Stability, Mexico’s Economy, Expert Warns


(MENAFN) A senior Mexican finance official warned Tuesday that the unpredictable tariff policies of the United States are undermining global financial stability and reducing liquidity. Gabriela Gutierrez Mora, president of the Mexican Institute of Finance Executives (IMEF), explained that investor confidence is waning due to increased uncertainty, which is making credit more difficult to obtain globally.

"This environment is taking a toll on economic expectations for Mexico," she said during the group's monthly meeting.

As a result, IMEF has revised its GDP growth forecast for Mexico in 2025, now predicting a modest 0.2 percent growth, down from last month's estimate of 0.6 percent. Gutierrez warned that a domestic recession could be on the horizon if current trends persist, particularly if the U.S. economy experiences stagnation or contraction.

Looking further ahead, IMEF anticipates a growth rate of just 1.5 percent for Mexico in 2026.

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