MEXICO CITY, July 18 (Xinhua) -- Credit rating agency Fitch Ratings on Thursday said it affirmed Mexico's long-term foreign-currency issuer default rating at BBB- with a stable outlook, citing the country's solid macroeconomic framework and robust external finances.
The agency noted in a statement that the recent landslide presidential election victory of Claudia Sheinbaum, candidate of the ruling party National Regeneration Movement, signals broad policy continuity and serves to solidify the party's extensive political support.
"Fitch projects real GDP growth to slow to 2.0 percent in 2024 from 3.2 percent in 2023, before further declining to 1.8 percent in 2025," the agency said.
"We anticipate economic activity to pick up for the rest of this year following a weaker economy during the first quarter," it added.
The agency voiced expectations that the phenomenon of the relocation of global value chains will offer Mexico opportunities to strengthen its participation in the global system and to diversify its manufacturing capacity although the relocating process will be gradual.
Fitch considered, however, that the November presidential elections in the United States constitute a source of "uncertainty," mainly regarding trade.
The combination of a slowdown in the United States, a narrower fiscal margin for the incoming Mexican administration and restrictive monetary policy will lead to a slight economic slowdown next year, said the agency. ■