This week in finance news: The IMF raised its growth forecast for Mexico to 1% in 2025, up from a previous estimate of 0.2%. Meanwhile, the Mexican peso weakened against the US dollar, ending the week down 0.25%. In other news, BBVA increased its offer for Banco Sabadell by 10% after the initial bid was rejected.
More news below:
IMF Raises Mexico Growth Forecast to 1%, Sees 1.5% in 2026
The International Monetary Fund (IMF) has raised its growth forecast for Mexico to 1% in 2025, up from its previous estimate of 0.2%, noting that fiscal consolidation, restrictive monetary policy, and trade tensions with the United States have weighed on consumption and investment, while exports have remained resilient. The IMF also projected Mexico’s fiscal deficit at 4.3% of GDP this year, above the programmed 3.9%, and estimated that gross public debt could reach 61.5% of GDP by 2030.
Peso Extends Losses, Hit by Dollar Strength and Fed Policy
The Mexican peso depreciated against the US dollar, extending losses for a second consecutive session as the dollar strengthened on the back of economic data and expectations that the Federal Reserve may slow or pause its cycle of monetary easing. The peso traded at 18.4015 per dollar, down 0.11% from Thursday’s close, according to data from Mexico’s central bank (Banxico). On a weekly basis, the currency was on track to record a 0.25% loss.
BBVA Raises Sabadell Offer 10% After Board Rejects First Bid
BBVA has raised its takeover offer for Banco Sabadell by 10% to €17 billion (MX$367 billion), following a rejection earlier this month by Sabadell’s board of directors. According to the terms of the offer, Sabadell shareholders would receive one BBVA share for every 4.8376 Sabadell shares. The previous offer included one BBVA share for every 5.5483 Sabadell shares plus €0.70 in cash.
Mexico’s 2022 Sustainability Bonds Achieve UN SDG Goals
Mexico’s Superior Auditor of the Federation (ASF) has confirmed that the sustainable sovereign bonds (Bonos ODS) issued by the Ministry of Finance and Public Credit (SHCP) in 2022 achieved results aligned with the UN’s 17 Sustainable Development Goals (SDGs). The bonds raised a total of US$6.5 billion, of which US$5.1 billion was directed toward nine SDGs, including zero hunger; quality education; clean water and sanitation; good health and well-being; affordable clean energy; decent work; industry, innovation and infrastructure; sustainable cities; and life on land.