MEXICO CITY, April 14 (Xinhua) -- Mexico could face stronger inflationary pressure and slower economic growth if the Middle East conflict continues, the Mexican Institute of Finance Executives (IMEF) said Tuesday.
Speaking at an IMEF's monthly press conference, IMEF President Gabriela Gutierrez said that the group currently expects inflation to end the year at 4.2 percent and economic growth at 1.4 percent.
The conflict has added to the already persistent core inflation in Mexico, making it harder for interest rates to keep falling, Gutierrez said.
Victor Herrera, head of IMEF's National Committee on Economic Studies, said higher fuel prices tend to curb household spending and weaken economic activity. In addition, there are inflationary pressures stemming from rising prices for food, fertilizers and goods due to higher transportation costs, he said.
Another risk factor is uncertainty over the possible renewal of the United States-Mexico-Canada Agreement by July 1, which could weigh on investment, Herrera said.
Mexico's economy grew 0.6 percent in 2025, according to the World Bank. ■
