Skip to content

Mexican Economy to Stall Next Year as US Slows, BofA Says

  • Bank cut its Mexico growth forecast for 2023 to 0% from 1%
  • Potential tariffs from USMCA dispute could weigh on activity
A worker stacks cases of avocados at a packing facility in Ciudad Guzman, Jalisco state, Mexico, on Friday, July 22, 2022.
A worker stacks cases of avocados at a packing facility in Ciudad Guzman, Jalisco state, Mexico, on Friday, July 22, 2022.Photographer: Luis Antonio Rojas/Bloomberg

Mexico’s economy will not grow in 2023 amid a US slowdown, higher interest rates and greater policy uncertainty, according to Bank of America Corp.

The bank cut its growth forecast for Latin America’s second-largest economy next year to 0% from a previous estimate of 1%, Carlos Capistran, chief economist for Mexico and Canada, wrote in a note Wednesday. For 2022, Mexico is expected to grow 1.9%, slightly above the previous 1.7% estimate, due to better-than-expected performance in the first part of the year, he said.