Mexico faces adverse 2023 economic outlook, says finance group

MEXICO CITY, Feb. 21 (Xinhua) -- Mexico's economic outlook for 2023 remains unfavorable and is subject to a high degree of uncertainty, including developments in the United States, the Mexican Institute of Finance Executives (IMEF) said Tuesday.

The beginning of the year has produced economic indicators that are difficult to interpret clearly, IMEF president Jose Domingo Figueroa said at a press conference.

Coupled with numerous uncertainties, that is generating "a turbulent economic panorama and cloudy outlooks," he said.

In addition, "in the global environment, different readings persist regarding inflation and its possible evolution," Figueroa said.

IMEF members have forecast economic growth this year of 1.2 percent, accelerating to 1.9 percent in 2024.

The return of activities that were suspended during the height of the COVID-19 pandemic is driving domestic growth, as is the global trend towards business relocation, said Figueroa.

However, in the United States, Mexico's main trade partner, there is a "rather unusual combination of indicators," with a labor market that is growing, but not at the desired pace, and a drop in the utilization of installed industrial capacity that portends weakness for the economy.