Mexican economy faces "accentuated risk" of deep U.S. contraction: experts

MEXICO CITY, April 3 (Xinhua) -- Mexico's economy faces the "accentuated risk" of a drastic economic contraction in the United States by the end of 2023 or early 2024, the Mexican Institute of Finance Executives (IMEF) said on Monday.

According to Jessica Roldan, vice president of the IMEF, the Mexican economy continued to exhibit "certain dynamism" through the first quarter of the year, but with differences between sectors.

Uncertainty about the economic trajectory has increased, with both upward and downward risks becoming more acute, especially with regard to the United States, Mexico's main business partner, she said.

"We see an accentuated risk on the downside, which is that of a more drastic or deep contraction in the U.S. economy, with its normal consequences for economic activity in Mexico," Roldan said at a press conference.

"The probability of seeing what is called a 'hard landing' in the United States is probably higher now than in past months," added the expert, who is also the chief economist at Finamex brokerage house.

Advance indicators of economic activity in various developed countries have shown slight increments in the manufacturing sector and a general rebound in services, according to the IMEF.

However, economic forecasts remain subject to a high degree of uncertainty due to a variety of elements that could complicate reading the indicators.

Mexico's economy is currently expected to see growth of 1.8 percent in 2023, according to the private institute.