Mexico Faces GDP Risk From US Immigration, IMF Projects Rebound

This week in finance news, the IMF warned that changes to US immigration policy could weigh on GDP by reducing remittance inflows, even as it projects the country’s growth to rebound above 2% by 2027. Domestically, regulators are advancing financial reforms to improve payment access and lower costs, while inflation remains within the central bank’s target range.

More news below:
 

Mexico Faces GDP Impact From US Immigration Changes, IMF Warns

United States immigration policies could lead to a decline of up to 0.9 percentage points of Mexico’s GDP in remittance inflows over a five-year period, according to economists at the IMF. It noted that such a decline in remittance income could particularly weaken internal demand and consumption.

Mexico Plans Card Payment Reform to Improve Access, Reduce Costs

The CNBV and Banxico have released a draft of new General Provisions for the disposition of payment networks for public consultation. The proposal seeks to create a more competitive and efficient card payment environment by lowering operating costs and establishing clear rules to support network interoperability.

IMF Projects Mexico's Economy to Rebound Above 2% by 2027

Mexico's economy is expected to return to its long-term average growth rate of above 2% by 2027, following the easing of commercial uncertainty from rising tariffs and the conclusion of the USMCA review, according to experts from the IMF. In the conclusions of its annual Article IV consultation with Mexico, the IMF projected the Mexican economy will record "weak" growth of 1% this year. 

Mexico’s Inflation Holds at 3.63%, Within Central Bank Target

Mexico's inflation rate for the first half of October reached 3.63%, according to data from the National Institute of Statistics and Geography (INEGI). This keeps inflation within the national monetary policy target of 3% ±1 percentage point.

Mexico's Retirement Savings Grow, Inclusion Gaps Persist

Mexico has experienced a significant shift toward formal savings and greater use of digital financial tools. Between 2021 and 2024, the share of adults with a retirement account rose from 35% to 42%, while adoption of online savings accounts and digital payment solutions tripled, according to the latest joint study by México, ¿Cómo Vamos? and Vanguard.