MEXICO CITY, April 16 (Xinhua) -- Credit rating agency Fitch Ratings on Wednesday affirmed Mexico's sovereign credit rating at "BBB-" with a "stable" outlook, but warned the country's economic slowdown could worsen due to increasingly protectionist trade policy of the United States.
"An economic slowdown already underway is likely to worsen amid an aggressive turn toward trade protectionism in the U.S. under the Trump administration," Fitch said in the statement.
In the statement, Fitch cited long-standing structural challenges as constraints on the rating, including muted long-term growth, weak governance indicators, fiscal challenges related to a low revenue base and budgetary rigidities, and contingent liabilities from state oil firm Pemex.
Despite recognizing Mexico's large and diversified economy, robust external finances, and prudent macroeconomic policy, Fitch cautioned that the country remains particularly vulnerable to U.S. trade protectionism because of the economic integration of the two neighbors.
The agency projects Mexico's economy will contract by 0.4 percent in 2025, weighed down by tariffs, policy uncertainty, fiscal tightening, and the U.S. slowdown. A modest recovery to 0.8 percent growth is expected in 2026.
Mexico's economy grew 1.5 percent in 2024, down from 3.3 percent the previous year. ■