Mexico needs more effort to lower debt, IMF says
SPY•The IMF said Mexico needs greater efforts to put debt on a declining path while fiscal consolidation continues in 2026. It projected economic growth of 1.5% in 2026 and 1.8% in 2027.
1. Debt and growth outlook
The International Monetary Fund said greater efforts are needed to put Mexico’s debt on a declining trajectory, even as fiscal consolidation continues in 2026. The fund projected growth of 1.5% in 2026 and 1.8% in 2027, with external uncertainty a main constraint.
2. Policy recommendations
The IMF called for revenue mobilization, better spending prioritization and greater private-sector involvement to protect growth-enhancing investment. It also said monetary policy should maintain a moderately tight stance to lock in disinflation; headline inflation is near the central bank’s target, though some underlying price pressures persist.
3. Structural priorities
The fund said Mexico’s financial system is sound, while improvements to anti-money laundering and counter-terrorism financing frameworks and deeper financial intermediation are needed. It also cited infrastructure gaps, regulatory burdens, trade integration, security, corruption and informality as areas affecting the country’s growth potential.
