MEXICO CITY: Mexico’s economy is seen growing between 2.5% and 3.5% this year and then expanding 2.0% to 3.0% in 2025, a draft budget from the country’s finance ministry showed on Wednesday.

Inflation in Latin America’s second-biggest economy is expected to tick down to 3.8% this year, according to the draft, essentially meeting the central bank’s target of 3%, plus or minus one percentage point. The expected 2024 inflation rate would also signal a slowdown from the 4.40% annualized growth rate in consumer prices in February.

For 2025, the draft budget predicts that inflation will further ease to 3.3%.

The document, which is used by lawmakers to plan future spending, also sees Mexico’s peso trading at 17.8 pesos per dollar this year, and slightly weakening to 18.0 versus the US currency next year.

Average crude oil production this year is forecast at 1.85 million barrels per day (bpd), rising slightly to 1.86 million bpd in 2025.