IDB Increases Mexico’s Growth Forecast for 2024 to 2.1%

IDB Increases Mexico’s Growth Forecast for 2024 to 2.1%

During a press conference at the National Palace, President Andrés Manuel López Obrador stated that the Mexican economy is strong and there are no indications of an impending crisis. However, he acknowledged that changes in policies in the United States could potentially create some instability. The Inter-American Development Bank (IDB) recently revised its economic growth forecast for Mexico, increasing it from 1.8 to 2.1 percent for 2024. This revision is based on higher performance in the United States and increased foreign direct investment flows.

The IDB also highlighted that the economies of Latin America and the Caribbean exceeded expectations in 2023, with growth of 2.1 percent. However, it anticipates a slowdown to 1.6 percent in 2024 before rebounding to 2 percent in 2025. The report emphasized the need for countries in the region to implement reforms to boost productivity, enhance economic resilience, and promote sustainable growth.

To improve productivity, the IDB recommended enhancing access to quality education, supporting the formalization and growth of small businesses, facilitating global market access for all businesses, attracting foreign direct investment flows through supply chain restructuring, and fostering a competitive credit market for the corporate sector. The report also highlighted opportunities for countries in the region to benefit from sectors influenced by foreign investments in Mexico and Brazil, such as the vehicle industry in Mexico.

In conclusion, the IDB stressed the importance of advancing reforms to increase productivity and promote sustainable growth in Latin America and the Caribbean. By prioritizing education, business development, market access, and investment attraction, countries in the region can capitalize on global opportunities and contribute to economic growth.

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