Particle.news
Download on the App Store

Mexico’s 2026 Budget Assumes 2.3% Growth as IIF Projects 0.9%

The gap raises the risk of revenue shortfalls given persistent bottlenecks and trade uncertainty.

Overview

  • IIF now forecasts Mexico’s GDP at 0.3% in 2025 and 0.9% in 2026, well below the government’s outlook.
  • The federal macro framework pegs growth at 1.0% for 2025 and 2.3% for 2026, forming the basis for the approved budget.
  • The 2026 revenue law targets 10.194 trillion pesos in total income, including 1.473 trillion from financing.
  • IIF cites institutional fragility, limited fiscal space, infrastructure bottlenecks, slowing remittances, and tariff/T-MEC uncertainty as growth drags.
  • Private and multilateral estimates remain weak—BNP Paribas at 0.9% for 2026, Banco Base and Banca Mifel at 0.8%, and recent IMF, CEPAL, and World Bank downgrades for 2025—while IIF sees modest FDI at 2.5–3% of GDP and softer 2026 capital-flow returns.