GlobalSource Partners | Country Insights

The first formal round of negotiations for the USMCA review took place on May 28 and 29 in Mexico City. According to various official statements and declarations, a significant portion of the agenda focused on automotive sector rules of origin and the current tariff applied to non-U.S. content in...

Politics: The Mexico-U.S. relations crisis and its implications for governance

MEXICO · Report · 08 Jun 2026

President Sheinbaum has chosen confrontation over cooperation, refusing U.S. extradition requests for ten Sinaloa officials — including a sitting governor, senator, and mayor — and framing her decision as a defense of national sovereignty. Her position, reinforced by AMLO's public backing, refra...

Economics: Data published during May confirm the economy remains weak, with higher risks ahead

MEXICO · Report · 01 Jun 2026

Economic indicators published in May reflect a Mexican economy cooling in the first quarter of the year, weighed down by weakness in domestic demand. The economy entered 2026 on a weak footing, with GDP growth virtually flat at 0.2% YoY in the first quarter, suffering from contractions in the pr...

Politics: The quality of public services is in clear decline according to an INEGI survey

MEXICO · Report · 01 Jun 2026

Mexico's municipal governments are failing to deliver the basic public services their citizens need. Satisfaction rates remain below 52% for all services except garbage collection, and have fallen further between 2023 and 2025. Roads and streets are the worst-performing services — fewer than 30% ...

Economics: Mexico's economic environment is deteriorating on multiple fronts

MEXICO · Report · 26 May 2026

The US-Iran conflict has driven Brent crude prices 54% above their 2025 historical average, generating inflationary pressures and threatening to slow global growth by between -0.7% and -1.3% in 2026, according to IMF projections. Mexico enters this adverse international environment from a positio...

Politics: 4T balance sheet — a deteriorating outlook

MEXICO · Report · 26 May 2026

Claudia Sheinbaum's government has been largely consumed by managing the difficult legacy inherited from López Obrador. This legacy includes a stagnant and indebted economy, a public security crisis rooted in the "hugs, not bullets" policy toward organized crime, an authoritarian-leaning politica...

Economics: Demand-side components (consumption and investment) are consistent with first-quarter GDP stagnation

MEXICO · Report · 19 May 2026

Mexico's economy entered 2026 on a weak footing, with first-quarter GDP virtually stagnant at 0.2% year-on-year growth. While the government has attributed the poor performance primarily to external factors, the data point to significant domestic demand weaknesses running alongside sectoral disru...

Politics: The 4T's education disaster laid bare

MEXICO · Report · 18 May 2026

Mexico's education system has suffered a marked deterioration under the administrations of López Obrador and Claudia Sheinbaum. A recent incident encapsulates the broader dysfunction: Education Secretary Mario Delgado announced the abrupt early end of the 2025–2026 school year, claiming unanimou...

Politics: Key legislative takeaways from the Congressional period that ended on April 30

MEXICO · Report · 11 May 2026

The congressional session that concluded on April 30 was one of the least productive in recent memory, despite Morena holding a legislative supermajority. Three bills stood out among the 61 approved across both chambers. The first is the electoral reform. The bill that was ultimately passed bo...

Economics: Poor Q1 public finance figures; Pemex remains a persistent burden

MEXICO · Report · 11 May 2026

In the first quarter of 2026, public finances deteriorated, casting serious doubt on whether a genuine "fiscal consolidation" process is actually underway this year — that is, whether a meaningful reduction in fiscal deficits, and in particular in the Broad Public Sector Borrowing Requirements (P...

Politics: The U.S. requests the extradition of Morena politicians, including sitting Sinaloa Governor Rubén Rocha Moya

MEXICO · Report · 04 May 2026 · 1 response

On April 28th, the U.S. Department of Justice submitted an extradition request for Sinaloa Governor Rubén Rocha Moya and nine other current and former state officials on charges of drug trafficking conspiracy, narcotics distribution, and firearms offenses in connection with the Sinaloa Cartel. Th...

Economics: Mexico's economy facing stagnant growth, persistent inflation, and mounting fiscal risks

MEXICO · Report · 04 May 2026

Figures released in April 2026 depict a Mexican economy under stress. Economic activity weakened, with GDP virtually stagnant at 0.2% YoY in Q1 2026 — a sharp deceleration from 1.8% YoY in Q4 2025 — as industry contracted and services lost momentum. Private consumption growth, although positive, ...

Economics: As inflation persists, expanded price controls loom as a threat

MEXICO · Report · 27 Apr 2026

The overall inflation rate for the first half of April (4.53%) was virtually unchanged from March (4.55%), while core inflation declined by 0.17 percentage points, falling from 4.44% to 4.27%. Although both indicators show a modest reduction, it is worth highlighting that core inflation has been...

Politics: Changes in Morena and the INE imply costs for the future of Mexican democracy

MEXICO · Report · 27 Apr 2026

Recent weeks have brought significant political changes in Mexico that carry far-reaching implications for both democratic governance and electoral competition. Within Morena, President Claudia Sheinbaum has orchestrated a leadership reshuffle that effectively tightens her grip on the ruling part...

Economics: The 2027 General Pre-Criteria for Economic Policy shows excessive optimism and disconnect from Mexico’s reality

MEXICO · Report · 20 Apr 2026

At the beginning of the month, the SHCP sent the General Pre-Criteria for Economic Policy for 2027 (PCGPE) to the Congress of the Union. These documents constitute the first step in the budget preparation process for the coming year and include an update of the macroeconomic framework and the exp...