Mexican financial sector could grow up to 5 % in 2024

According to specialists in the financial area, Mexico has the potential to grow between 4 and 5 % in the next 12 to 18 months thanks to the growth of bank credit portfolios

Mexico’s financial growth for the next 12 to 18 months could be between 4 and 5 % according to statements by Alfredo Calvo, Leader of the Financial Institutions sector for Latin America at Standard & Poor’s, Global Ratings.

According to the interviewee, this possible financial growth is favored by the increase in bank loan portfolios, despite high interest rates.

These loans continue to grow and “have the space to continue doing so in the next 12 to 18 months,” in Calvo’s opinion.

Experts in the Mexican financial sector maintain the expectation that in the remainder of 2024 and 2025 the economy will be “attractive for households and also for companies, because low interest rates could generate more access to financing.”

In this sense, Global Ratings assured: “we expect a terminal rate around 7 % and, in this sense, we expect interest rates to remain above the levels to which we were accustomed before the pandemic.”

On the other hand, they indicated that it is possible that the Bank of Mexico will pause the cycle before resuming cuts in the coming months, if the United States Federal Reserve does not lower interest rates again.


Source: cointelegraph

(Reference image source: Jorge Aguilar in Unsplash)

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