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Mexico GDP Slips 0.3% in Q3 as Sheinbaum Points to U.S. Auto Tariffs

She blames a delayed hit from U.S. auto tariffs for the slump, projecting a late‑year rebound.

Overview

  • INEGI reported a 0.3% contraction quarter on quarter and year on year in Q3 2025, the first annual decline since early 2021.
  • Industrial output led the downturn with a 1.5% quarterly and 2.9% annual drop, reflecting tariff uncertainty and the wind‑down of major public works.
  • Sheinbaum said recent auto plant closures stem from earlier decisions to discontinue models, adding that companies are not shutting operations because of tariffs.
  • Citing analyses from Banxico, the Finance Ministry and private economists, she described the setback as confined to the third quarter with a gradual recovery expected.
  • Private forecasts now see roughly 0.5% GDP growth for 2025, whereas the government maintains a 1.5% to 2.3% outlook and points to employment data as a sign of stabilization.