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Geopolitical conflicts in Eastern Europe have exacerbated uncertainty surrounding the Mexican economy, the Mexican Institute of Finance Executives (IMEF) said.

In its monthly analysis, the private body said that the global economic landscape changed notably due to the Russia-Ukraine conflict, whose impact is still premature to gauge.

IMEF members thus downgraded Mexico's economic growth forecast for the year from the two per cent projected in February to 1.9 per cent, Xinhua news agency reported.

Meanwhile, the analysis pointed out that the Mexican economy is also affected by a combination of negative internal factors, such as declining economic activities, rising inflation and a huge deficit shown by the latest trade balance figures.

A recent rise in crime dragged the economy as well, the IMEF noted, because it undermined the rule of law and further disturbed a virtuous circle of trust, investment, employment and growth.

The institute added that the adverse environment could lead the current administration to make cuts and adjustments in spending in the coming months.

Mexico's economy, the second largest in Latin America after Brazil, grew by 4.8 per cent in 2021, after plunging 8.2 per cent in 2020 due to the Covid pandemic, according to the National Institute of Statistics and Geography.