According to a report by the firm, Mexico’s GDP will be affected by external factors, particularly interest rate hikes in the United States, while at the domestic level the largest financing costs and of the Energyand a still somewhat restrictive fiscal policy, will add pressure to the economy, which is already facing uncertainty due to the difficulties of the tNorth American Trade Treaty, TMEC.
Tension by the TMEC
Concerns about the USMCA increased in July when the United States and Canada They requested consultations with Mexico about what they affirm are non-compliances in energy matters, which they consider discriminatory and detrimental to their companies.
For its part, the Mexican government has expressed that it hopes to reach a mutually satisfactory solution for all parties and defends that no violation of the TMEC has been committed from the country.
Mexico’s economy grew between April and June for the third consecutive quarter and increased by 1% quarterly, despite the contraction of the United States, but both the rating agency Fitch and Bofa see risks in that the growing probability of recession in the neighboring country affects the local economy over time.
On a positive note, Bank of America economists are keeping expectations unchanged for the nation’s central bank, Banxicowith a terminal rate of 9.5% in 2022 and no cuts in 2023.
Source: Ambito
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