• Public security and principles implemented by the United States are a source of concern for companies.
• The central bank warns that the slowdown may deepen; calls on investments among weakened demand and commercial tensions

The Banco de Mexico (Banxico) economic research director Alejandrina Salcedo Cisneros said that uncertainty has a wide impact on the country’s companies, so the perspective indicates a moderate extension of regional economies.

Banxa economist added: “We had a slowdown that we observed for several quarters, to which this environment of uncertainty will intensify.” She said that this could be due to lower internal and external demand, taking into account that production has released in the United States (USA).

The Central Bank of Mexico revealed an economic contraction of 0.6 % in the fourth quarter of 2024. Although the country is not in recession, having a negative quarter may be an introduction to a deeper economic slowdown.

Business management, with which Banxico interviews were interviewed, indicated that the deteriorating public security policies and trade implemented by the US belong to the risk that could affect the regional economies in the following year.

Also, public investments in infrastructure at state and federal level may be lower than expected.

She believed that in the face of these challenges, it was necessary to further strengthen the domestic sources of growth and generate favorable investment conditions, especially to further promote the construction of infrastructure.