Key View

• Mexican economic growth will remain tepid in 2022, as high inflation, rising interest rates and investor uncertainty constrain private consumption and investment, while weak external demand slows export growth.
• We at Fitch Solutions have downwardly revised our 2022 real GDP growth forecast from 2.2% to 1.8%, reflecting the spike in

Key View

• Gas-fired power generation will continue to dominate Mexico’s power mix, supported by the commissioning of new gas-fired power plants and ongoing support for the sector.
• Additionally, Mexico’s nuclear power sector development remains uncertain, which we believe will inhibit the nuclear capacity growth.
• Mexican President Andrés

Key View

• At Fitch Solutions, after a 50 basis point hike on February 10 to 6.00%, we now forecast that the Banco de México (Banxico) will raise its benchmark interest rate to 6.75% by end-2022, an upwards revision from our previous forecast of 6.50%, due to elevated inflation and our more hawkish outlook for the US Federal Reserve. We forecast

Key View

• Mexican economic growth will remain tepid in 2022, after supply chain disruptions, high inflation, low fiscal spending and weak investment tipped the economy into a technical recession in Q421.
• These factors will continue to constrain the economy’s momentum into 2022, with a spike in Covid-19 cases caused by the Omicron variant also

Key View

• Hospitalisations rise as Covid-19 cases surge in Mexico.
• Increasingly overburdened hospitals will weigh on the healthcare system.
• Vaccinations continue to lag behind regional peers, however the rollout of booster jabs will increase coverage and reduce hospitalisations.

Pressure on Mexico’s health system continues to rise. Mexi

Key View

• Mexican growth will slow in 2022 as higher inflation, decelerating US growth, the spread of the Omicron variant and an unfavourable policy environment constrain activity.
• Nevertheless, economic activity will recover from the contraction recorded in Q321, as fiscal spending ticks higher, supply chain disruptions slowly ease and Mexico

Key View

• State-owned Pemex has announced that it will receive further financial support from the government, as the company seeks to reign in its debt load and reaffirm its dominance in the domestic energy space.
• While the results of the June 2021 legislative elections have blunted the ability of President Andrés Manuel López Obrador (AMLO)

Key View

• At Fitch Solutions, we now expect the Banco de México (Banxico) will hike by 50 basis points, to 5.50%, during its December 16 meeting, due to the risk that recent upside inflation surprises de-anchor inflation expectations. We forecast inflation will likely end 2021 at 7.50%, up from 7.00% previously.
• In 2022, we now expect Banxico