MEXICO CITY, April 6 (Xinhua) — Mexico\’s economic and fiscal outlook faces risks in the short term due to \”deterioration\” and an expected \”shallow recession\” in the United States, Fitch Ratings agency warned Thursday.
\”Fitch\’s base case remains for a shallow recession in the U.S. starting in 2H23 (the second half of the year) with further risks from tighter-for-longer financial conditions,\” the agency said in a report.
Mexico should see GDP growth of 1.6 percent in 2023 and 1.5 percent in 2024, the agency forecast.
In a report delivered to Congress recently, Mexico\’s Finance Ministry forecast 3 percent growth in both 2023 and 2024.
The report signaled \”a general continuation of the country\’s fiscal path including prudent management to offset revenue deterioration,\” Fitch Ratings said, adding that \”the economic outlook remains clouded by deteriorating growth in the U.S.\”
Mexico\’s economy, the second largest in Latin America after Brazil, grew 3.1 percent in 2022, down from the 4.7 percent in 2021.