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Mexico’s Economy Contracts in Q3 as Industry Falls and Services Cool, Early INEGI Data Show

Officials cite U.S. tariffs, forecasting a rebound.

Overview

  • INEGI’s timely estimate points to a quarterly GDP drop of about 0.29%–0.3% in Q3 2025, with the final reading due November 21.
  • Secondary activities fell roughly 1.5% quarter‑to‑quarter, services slowed sharply to near‑flat growth, and primary activities rebounded by about 3.2%.
  • President Claudia Sheinbaum and the Finance Ministry attribute the setback to the lagged impact of U.S. tariff measures on manufacturing, particularly autos.
  • Sheinbaum said recent automotive plant closures reflected prior product decisions rather than tariffs, and authorities expect conditions to improve late in 2025.
  • Analysts flag soft full‑year growth near 0.5% and structural drags in energy, construction and investment; separately, tourism GDP rose 0.4% in Q2 with internal consumption up 2.3% q/q and receptive down 4.7%.