Investing in Mexico: The Cost of Persistent Uncertainty

Mexico maintains macroeconomic stability and investment-grade ratings, yet faces stagnant growth as persistent uncertainty surrounding USMCA and domestic reforms weighs on investment sentiment.

Key Takeaways

• 1.Mexico is likely to maintain its investment-grade status despite recent downgrades by Moody's and S&P which were already priced into the market.
• 2.Persistent uncertainty from USMCA reviews and domestic institutional reforms (e.g., judicial reform) is constraining investment and stagnating GDP growth.
• 3.The Mexican peso is resilient due to attractive carry, but its upside is capped by global risks and trade uncertainty.

Table of Contents

• Mexico: The cost of persistent uncertainty
• An eventful May for credit rating agencies
• Investment implications
• Appendix

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