Mexico needs more effort to lower debt, IMF says

By Reuters News

MEXICO CITY, Oct 2 (Reuters) - The International Monetary Fund said on Friday that greater efforts are needed to put Mexico's debt on a declining trajectory, even as fiscal consolidation continues in 2026, following an Article IV consultation mission to Mexico City in September.

The fund projected Mexico's economy will grow 1.5% in 2026 and 1.8% in 2027, though growth remains constrained mainly by external uncertainty, and called for monetary policy to maintain a moderately tight stance to lock in disinflation.

• Revenue mobilization, better spending prioritization and greater private sector involvement are needed to protect growth-enhancing investment, the IMF said.

• Headline inflation is near the central bank's target, though some underlying price pressures persist.

• Mexico's financial system is sound, but improvements to anti-money laundering and counter-terrorism financing frameworks and deeper financial intermediation are needed, the fund added.

• According to the IMF, raising potential growth in Mexico requires closing infrastructure gaps, reducing regulatory burdens and strengthening trade integration, according to the IMF.

• Improving security, combating corruption and lowering informality were also cited as necessary to lift growth potential.

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