IMEF Yucatan predicts recession in Mexico: The economy is slowing down.
The Mexican Institute of Finance Executives (IMEF) Yucatan warned that if the Mexican economy continues to slow down in the coming months, there could be an economic recession.
At a press conference, Isaías Marrufo Góngora and José Antonio Silveira Bolio, president and former president of IMEF Yucatán, respectively, pointed out that economic expectations for this year continue to deteriorate.
Why would the economy in Mexico fall into recession?
“The volatility generated by the announcements of tariffs, their reduction and their reimposition have altered the stability of global financial markets and investors have retreated, which affects liquidity in the markets and complicates the granting of credit practically everywhere in the world.”
That same trend would lead to a deterioration in the expectation of job creation. In this month, 220 thousand are registered against the 280 thousand expected in March.
The exchange rate and the current account deficit remain relatively stable at 20.90 pesos to the dollar and 0.9%, respectively, by the end of the year.
Appeal to Mexicans in the face of the risk of recession
In the face of a potential slowdown, Marrufo Góngora urged the population to take care of their work and be more productive, be cautious with their debts and consume local products.
Similarly, he recommended saving as much as possible.
The president of IMEF Yucatán also said that in 2024 the entity had a foreign direct investment of 147 million, much higher than the previous year.
Facts about the economy in Yucatan
“We went from 100 to 147 million, an increase of 47% in foreign direct investment in our state. That is positive because it means more jobs, more economic activity, more dynamism and more opportunities,” said the leader.
In the case of national tourism, people who visit Yucatan, he said that it grew by 9% and foreign tourism by 24%. However, he said that more national tourists arrive than foreigners.
In recent months, 143,000 Mexicans and 36,000 foreigners have arrived.
“And good news is that in the tertiary sector in the economy we have primary, secondary and tertiary activity. In the tertiary sector (trade, tourism, financial services, health, education…) we have a fairly dynamic performance with a growth of 3.9%.”
Inflation in Yucatan, above the national average
Unfortunately, the leader pointed out, this economic dynamism caused state inflation to be at 4.3%, above the average of 3.8%.
“We have been experiencing inflation for 13 months according to the report we have. What does this mean? That our city and our state have been becoming more expensive than the country’s average for more than a year. Why is this? Well, to all this good news,” said the president of IMEF Yucatan.
“If we have more companies, more foreign direct investments and more tourists, what happens to prices? They rise a little more than the national average due to the dynamism we have. That would be the part of the cost that this development has,” he explained.
Source: Diario de Yucatan
