IMF Urges Mexico to Lower Debt

The International Monetary Fund stated that Mexico needs stronger measures to reduce public debt as economic growth is projected at 1.5 percent for 2026. The fund also advised maintaining a moderately tight monetary policy to address ongoing inflation pressures.

FILE PHOTO: A drone view of Guadalajara, Mexico, May 26, 2026.

Mexico must intensify debt-reduction efforts as its draft 2027 budget projects public debt rising to 55.0% of GDP, the IMF said Friday evening. The warning follows an Article IV consultation mission to Mexico City concluding in September. The fiscal trajectory risks delaying inflation convergence and keeping borrowing costs elevated for investors.

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