Mexico is Prepared to Face Financial Crises, Says SHCP

Mexico is well-equipped to overcome financial shocks and confront global challenges, commented the nation’s Secretary of Finance, Rogelio Ramírez de la O, on Monday after the United States announced it would impose 25% tariffs on its products.

During a call with investors, the official emphasized that not only is Mexico resilient, but it continues to be a key and safe destination for investment. Despite these claims, the peso continued to see losses throughout the morning, with a depreciation close to 1.9%, reaching 21.0725 per dollar. "While external challenges can impact economic activity, recession is not in our forecasts," Ramírez de la O stated. However, he acknowledged that "a slowdown in growth is anticipated," stressing that "the long-term trend remains favorable." J.P. Morgan warned that Mexico and Canada could face a recession if the 25% tariffs announced by President Donald Trump's administration remain in place. Ramírez de la O assured that the second largest economy in Latin America is well-prepared to tackle current and future global challenges, although he noted that some sectors, such as the automotive industry and computing and electronics, may be the most affected.

It is crucial for the Mexican government and businesses to prepare for international uncertainty and seek to diversify their markets. In times of crisis, adaptability becomes key to maintaining economic stability and minimizing negative impacts, highlighting the importance of fostering sectors that do not rely solely on a single trade partner.