The International Monetary Fund has called on Mexico to make greater efforts to put its public debt on a declining path, while continuing measures aimed at maintaining economic stability.
The IMF made the recommendation following its Article IV consultation mission to Mexico City in September. The fund said fiscal consolidation is continuing in 2026 but argued that additional measures are needed to strengthen public finances.
The IMF expects Mexico's economy to grow by 1.5% in 2026 and 1.8% in 2027. It said economic activity remains constrained mainly by external uncertainty and recommended that monetary policy remain moderately tight to help maintain progress in reducing inflation.
The fund said Mexico could strengthen its fiscal position by improving revenue collection, prioritising public spending and encouraging greater private-sector participation. It said these measures would help protect investment that supports long-term economic growth.
Inflation has moved closer to the target set by Mexico's central bank, although the IMF noted that some underlying price pressures remain. It also described the country's financial system as sound while calling for stronger measures against money laundering and terrorist financing.
The IMF said Mexico's longer-term growth potential could be improved by addressing infrastructure gaps, reducing regulatory barriers and strengthening trade integration.
It also identified security concerns, corruption and high levels of informality as issues that need to be addressed to support stronger economic growth.
The latest assessment comes as Mexico continues to manage fiscal pressures while seeking to maintain investment and economic activity. The IMF's recommendations are aimed at improving the country's debt position without undermining growth-enhancing spending.
The fund's latest projections suggest that Mexico's economy will continue expanding, but at a relatively moderate pace. It said stronger fiscal management and structural reforms would be important for improving the country's economic prospects in the years ahead.