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Tropical Depression Earl was expected to dissipate over Mexico later on Saturday after it was downgraded from a tropical storm, the U.S. National Hurricane Center said.
The storm's maximum wind speed had dropped from 50 mph (80 kmh) to 35 mph (56 kmh) by Saturday morning, according to the Miami-based center.
Earl was approximately 100 miles (145 km) southwest of Veracruz, Mexico and was moving west at 10 mph (16 kmh) into the mountains, where it was expected to continue losing power.
Forecasters were still warning that the storm could produce dangerous flash floods and mudslides with rainfall up to 18 inches (30 cm) in some areas in the Mexican states of Guerrero, Hidalgo, Oaxaca, Puebla, Tlaxcula and Veracruz.
The Mexican government discontinued the tropical storm warning and there were no coastal warnings or watches in effect.
Before crossing Mexico's Yucatan peninsula, Earl battered Belize earlier this week, smashing car windows and punching holes in the roofs of Belize City's wooden houses. It also downed trees and flooded parts of the coast.