Fitch Ratings forecasts Mexico's recession in 2025

Fitch Ratings predicts a technical recession for Mexico in 2025, forecasting a contraction of the Gross Domestic Product (GDP) in the second and third quarters. This signals a concerning economic outlook for the country. The international credit rating agency cited weakening business conditions, exacerbated by uncertainty surrounding tariffs, as key factors contributing to the expected downturn. This is impacting capital expenditure and consumer confidence. Fitch also noted that while Mexican banks are well-positioned to weather the recession, smaller institutions may face greater challenges. This is due to their lower capital levels and less diversified business models.