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Tariffs and Uncertainty Drag Mexico’s 2025 Outlook to Near-Stall, With Growth Seen Around 0.4%

Private economists now peg 2025 growth near 0.4%, reflecting damage from U.S. tariffs alongside domestic policy uncertainty.

Overview

  • CEESP says Mexico ranks among the most affected economies this year, citing weaker investment tied to heightened trade protectionism and internal uncertainty.
  • Banxico’s November survey cut the 2025 GDP forecast to 0.39% and trimmed 2026 to 1.29%, with specialists expecting just 0.1% seasonally adjusted growth in the fourth quarter.
  • Market consensus from Citi’s biweekly poll puts 2025 growth at 0.4%, with estimates spanning 0.1% to 0.6%, and projects a modest 1.3% in 2026.
  • Official data show deep investment contractions in 2025, including an annualized 8.4% drop in total investment, construction down 10.2%, machinery and equipment off 6.1%, and a 29.1% slide in infrastructure outlays through October.
  • OECD projections stand at 0.7% growth for 2025 and 1.2% for 2026, while CEESP expects inflation to stay above 3% and analysts flag fiscal strain from Pemex support, a roughly 53.1% debt ratio, and a potential 3.6% deficit without tax reform.