Before the reforms, the economy was expected to grow by less than 2% in 2025 and we expect inflation to end in 2025 at levels of 3.5% annually, the bank noted.
According to BBVA estimates, the Bank of Mexico (Banxico) will continue to cut the reference rate, which will translate into greater risk for the country.
“The context warrants higher risk premiums in the future. Credit agencies include quantitative and qualitative factors and the approved reforms could result in a negative watch for Mexico or increase the possibility of a rating cut,” he said.
The bank believes that while there is a need for reforms in Mexico, particularly in the face of rampant corruption and impunity, these changes could potentially do more harm than good.
