By Brendan O’Boyle
MEXICO CITY (Reuters) -The Bank of Mexico slashed its growth forecasts for Mexico’s economy this year and next year, citing “sluggish” domestic activity and uncertainty related to U.S. trade policy, according to its quarterly report published on Wednesday.
The central bank estimated that Mexico’s gross domestic product will grow 0.1% this year, far below its February estimate of 0.6%.
The bank also cut its 2026 GDP growth forecast in half, forecasting 0.9% growth compared to its previous estimate of 1.8%.
“Domestic economic activity is expected to be sluggish over the forecast horizon. In addition to the weakness that has already been observed, the global economy faces significant challenges stemming from the changes in US trade policy,” the bank’s report said.
(Reporting by Brendan O’Boyle; Editing by Emily Green)
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