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Strong peso, stubborn inflation cloud Mexico’s 2024 growth prospects
Despite nascent nearshoring trade expectations, the Mexican economy will be challenged by a welter of economic issues during the second half of 2024. The most notable is a still-restrictive interest-rate environment even as Banco de México has begun easing monetary policy, a strong peso and soaring labor costs. Potential economic softening in the U.S. further complicates the outlook. Long-run challenges also remain, such as reversal of earlier energy sector reforms, poor productivity growth and high crime and violence. However, Mexican government spending and the possibility of more fulsome nearshoring of ... (full story)