The Bank of Mexico (Banxico) on Friday warned of the risk of a recession in the eurozone and the United States amid downbeat economic growth expectations and lingering sovereign debt woes.
In a statement, Banxico pointed to the lack of solutions to the sovereign debt crisis that has affected some large eurozone economies and questioned the health of European financial institutions.
The bank added that uncertainty also arises from the lack of political agreements to consolidate public finances as well as the potential impact of the deteriorating economic situation in the 17-member bloc.
The United States, despite some favorable economic indicators, is still suffering prevailing structural problems such as unemployment and indebtedness of households, the statement said.
It said that the uncertainty in financial markets could lead to low economic growth in the United States.