Banxico Lifts Mexico Growth Forecast, Says Investment Grade Holds
Banco de México raised its 2026 growth forecast to 1.5% on 26 August. The same quarterly report says the Mexico investment grade standing survives at the main agencies. The post Banxico Lifts Mexico Growth Forecast, Says Investment Grade Holds appeared first on The Rio Times .
Banxico, Mexico's central bank, raised its 2026 growth forecast to 1.5% in a quarterly report published on August 26, 2026. The report also states that Mexico's investment grade rating is currently maintained by the main credit rating agencies. Banco de Mexico, the central bank known as Banxico, presented the revised forecast after the second quarter's activity exceeded their expectations.
Output grew 1.42% from the first quarter, seasonally adjusted. Bank officials still anticipate only a moderate and gradual acceleration in growth. The investment grade status is the highest credit rating tier, which signifies a borrower's safety for conservative investors. Falling below this level would force certain pension funds and index trackers to sell.
Banxico notes that despite recent rating downgrades, Mexico has retained its investment grade rating. The sovereign's financial health, including the state oil company Petróleos Mexicanos, is considered part of the country's balance sheet. Mexico's international reserves and flexible credit line with the IMF provide additional buffers against capital flight.
The report highlights fiscal discipline, a sound banking system, sustainable external accounts, and a flexible exchange rate as factors contributing to the economy's resilience. The report also mentions the US-Mexico-Canada Agreement (USMCA) as a potential risk to growth, but overall, the balance of risks to Mexico's growth remains downward.
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