Forecast: Total Non-Performing Loans in Mexico

The analysis of total non-performing loans (NPLs) in Mexico reveals a consistent decline from 3.24 units in 2013 to 1.97 units in 2023. The annual year-on-year variation indicates decreasing rates over the last two years, with -2.02% in 2022 and -1.01% in 2023. The forecasted compound annual growth rate (CAGR) over the next five years is -0.86%, implying a continuing downward trend, reaching 1.87 by 2028, representing a total 4.22% decline over the period.

Future trends to watch for:

• Economic stability and growth affecting loan repayments.

• Regulatory changes impacting banking sector practices.

• Adoption of improved credit assessment technologies

• Macroeconomic shocks and their potential impact on default rates.