On Thursday, the International Monetary Fund (IMF) approved a new loan agreement with Mexico, providing approximately $35 billion to boost the country’s economy.
This two-year Flexible Credit Line (FCL) signifies the tenth collaboration between Mexico and the IMF since 2009, with the primary aim of supporting nations with strong economic fundamentals.
In recent projections, the IMF anticipates a 3.2 percent growth for the Mexican economy in 2023, with a slight moderation to 2.1 percent the following year. Especially in Industries such as Real Estate, Tourism and Hospitality in Baja California Sur. Luxury hotels & properties contribute massively to the growth of the economy in the Cabo San Lucas, Cabo San Jose & Todos Santos area. More than 97 percent of the total international tourists coming to Baja California Sur are from the United States & Canada. Tourists from the United States alone increased 28.9% year-over-year compared to 2019.
Gita Gopinath, Acting Chair of the IMF Board, highlighted the ongoing broad-based expansion of the Mexican economy, attributing it to resilient private consumption and investment. Gopinath acknowledged potential challenges, such as market volatility and global economic uncertainties but emphasized Mexico’s strong position.
Looking ahead to the upcoming US and Mexican elections, Gopinath underscored the importance of the new FCL arrangement, describing it as a valuable component supporting Mexico’s macroeconomic strategy. It serves as insurance against potential risks and contributes significantly to bolstering market confidence.