IMF Warns Mexico to Accelerate Public Debt Reduction

The International Monetary Fund warned on October 2, 2026, that Mexico must increase efforts to place its public debt on a declining trajectory. Following a consultation mission in September, the organization noted that Mexico's draft 2027 budget indicates a more gradual fiscal consolidation than previously planned, with public debt projected to rise to 55.0% of GDP from 54.0% at the end of 2026.

The IMF projected economic growth of 1.5% in 2026 and 1.8% in 2027. It cautioned that geopolitical tensions, external uncertainty, and El Niño could delay the return to the 3% inflation target until early 2028. To improve potential growth, the IMF recommended that the government combat corruption, reduce regulatory burdens, close infrastructure gaps, and strengthen trade integration.

In a separate monetary action, the Banco de México maintained its benchmark interest rate at 6.50% in September. The central bank expects inflation to reach its target by the fourth quarter of 2027.