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Published on Friday, August 19, 2022

Mexico | Headwinds will mean low growth in 2023

In the previous installment of this column, I analyzed the dynamics shown by the Mexican economy so far this year, which until now has been characterized by the continuation of a slow and incomplete recovery.

Key points

  • Key points:
  • It seems to me that a series of factors are brewing that will have a negative impact on the country's economic growth.
  • We are facing a process of slowdown in the US economy that will undoubtedly have a negative effect on the external sector of the Mexican economy.
  • To control inflation, the Fed is raising interest rates and reducing the size of its balance sheet in order to achieve a contraction in aggregate demand.
  • In addition, fiscal policy, especially now that the new inflation reduction law is implemented, will be less expansionary, which will also reduce aggregate demand.

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