Global ratings agency Fitch raised expectations for the Mexican economy, as it expects growth of 3.1%, up from the 2.5% forecast in June.
In September’s “Global Economic Outlook” document, the rating agency noted that the economy’s growth in the second quarter far exceeded its forecasts, as the strong labor market and fiscal policy announcements have benefited GDP.
“Private investment has grown significantly in the last two quarters, particularly in non-residential construction and machinery and equipment. This would be a result of the effects of nearshoring,” Fitch said.
“We anticipate that nearshoring will be an important growth opportunity for Mexico over the next three to five years as the announced investment projects are executed. Mexico is already increasing its share of U.S. imports,” Fitch added.
By 2024, the rating agency forecasts that GDP will grow 1.8%, and by 2025, it will have a rebound of 2.3%.
