Mexico said Tuesday that the International Monetary Fund’s warning of a contraction in its economy this year was too pessimistic because its efforts to attract investment would offset the hit from US tariffs.
The IMF said Latin America’s second-largest economy was among the top US trading partners who would be hurt by President Donald Trump’s trade war.
It expects Mexico’s gross domestic product to shrink by 0.3 percent this year, slashing its growth forecast by 1.7 percentage points from January.
President Claudia Sheinbaum said her government disagreed with the forecast.
“We have a plan to strengthen the Mexican economy,” she said at her morning news conference.
On April 2, Sheinbaum’s government lowered its economic growth forecast for 2025 to a range of 1.5 to 2.3 percent, citing uncertainty over the policies of its largest trading partner.
Mexico is seeking an agreement with the Trump administration to lift US tariffs on its exports of automobiles, steel and aluminum, while also seeking foreign investment.
The Mexican economy suffered its first contraction in three years in the fourth quarter of 2024 even before tariffs were introduced, putting it on the edge of a recession.
Mexico replaced China in 2023 as the largest trading partner with the United States, which buys more than 80 percent of its exports.
