Mexico’s economic fundamentals are strong. The medium-term outlook for the Mexican economy foresees steady growth underpinned by strong macroeconomic policies, broad reform initiatives, and relatively strong balance sheets. Key risks are external and include a United States (U.S.) growth slowdown, lower oil prices, and volatility in global financial markets. Related shocks could adversely impact the financial system through the deterioration of corporate and public balance sheets and reversal of capital flows leading to tightening financial conditions.
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