Mexico's Economic Stability at Risk: Moody's Signals Warning with Negative Outlook

Mexico City, Sunday, 17 November 2024.
In a significant shift that rattles investor confidence, Moody’s has downgraded Mexico’s debt outlook to ‘negative’ while maintaining its Baa2 rating. The decision stems from concerns over judicial reforms threatening institutional independence and growing fiscal challenges, including a 6% GDP deficit and mounting Pemex liabilities. This comes as Mexico’s ambitious 2025 growth projections of 2-3% face skepticism against current 1.5% growth rates, highlighting increasing economic uncertainty.