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UPCOMING WEBINAR - CAUCASUS AND CENTRAL ASIA: POLITICAL PASSIONS IN THE...

Politics: Not much action on the legislative front by the end of the period
MEXICO · Report · 19 May 2025

Despite considerable time and effort expended in the halls of the legislature and in the mass media, including in the morning presidential press conferences, to giving the impression that the Fourth Transformation was advancing on the legislative front, the reality appears less spectacular. For t...

Economics: First quarter public finances surprisingly favorable yet unsustainable for the rest of the year, with scant room to contain spending
MEXICO · Report · 13 May 2025

Mexico's public finances delivered favorable results in the first quarter of 2025, driven by a substantial increase in non-oil tax revenues (real annual +17.8%) and a contraction in public spending (real annual -5.9%), a performance facilitated by calendar effects. But despite such a positive sho...

Politics: The current state of democracy in Mexico
MEXICO · Report · 12 May 2025

There is rising concern in Mexico that the country’s democracy is in danger. The current debate was sparked by a magazine article and interview granted by Ernesto Zedillo in which the former president declared that Mexican democracy is dead and that the country is moving toward an authoritarian a...

Mexico Macro Monitor: Gross Fixed Investment falls in February for sixth consecutive month
MEXICO · In Brief · 06 May 2025

Gross Fixed Investment in February: Sixth consecutive annual decline due to sharp contraction in construction investment and recent drop in M&E Gross fixed investment (GFI) contracted by -6.0% YoY in February, continuing the negative trend that began in the second half of the previous year and ma...

Mexico Macro Monitor: Private consumption in February posts a third consecutive annual decline
MEXICO · In Brief · 06 May 2025

Private consumption through February: Third consecutive annual decline driven by sharp contraction in imported goods consumption, alongside persistent weakness in spending on domestic goods. Private consumption fell by -0.7% YoY in February 2025, marking the third consecutive decline after a slow...

Economics: Trouble ahead despite some marginal upticks in the 1Q preliminary GDP report
MEXICO · Report · 05 May 2025

While last week’s preliminary GDP report for the first quarter may have marginally surpassed some expectations, its scant improvement appears to mask deeper economic problems. Robust numbers for January allowed the agricultural sector to deliver most of the economic growth last quarter, as indust...

Politics: Telecommunications reform poses the risk of an economic and political step backward
MEXICO · Report · 05 May 2025

A new telecommunications bill has sparked an uproar over the issue of censorship and freedom of expression in relation to the media. The proposed legislation replaces the Telecommunications Law approved in 2013 during Enrique Peña Nieto’s administration. While many of Peña Nieto’s policies have s...

Public finances appear solid in Q1, but a detailed examination reveals their fragility going forward.
MEXICO · In Brief · 02 May 2025

As of March, the fiscal deficit declined sharply. Revenues increased significantly and spending remained on a downward trend, although more moderately. Notwithstanding it is unlikely the annual fiscal targets will be met. In the first quarter of 2025, public finances showed significant improvemen...

Mexico Macro Monitor: Pemex Q1 2025: Financial Results and Oil&Gas Production Decline Continues; Marginal Improvement in Refining
MEXICO · In Brief · 01 May 2025

In the first quarter of 2025, Pemex reported mixed operational results. On one hand, liquid hydrocarbon production fell by 11.3% compared to the same period in 2024, natural gas output declined by 8.7%, and crude oil exports dropped by 22.8%. On the other hand, the refining segment showed modest ...

Mexico Macro Monitor: Q1 2025 GDP maintains slowdown trend, growing just 0.6% YoY according to timely figures
MEXICO · In Brief · 30 Apr 2025

Q1 2025 GDP maintains slowdown trend, growing just 0.6% YoY due to industrial contraction and weakening services According to timely figures from INEGI, Mexico’s GDP in Q1 2025 posted weak annual growth of 0.6% (seasonally adjusted), similar to the previous quarter and nearly one percentage point...

Economics: Consumer confidence extends its slide as employment weakens; a further erosion of consumption is possible
MEXICO · Report · 29 Apr 2025

Mexico’s consumer confidence index deteriorated in its latest reading, prompting some analysts to note that it foreshadows a greater deceleration of private consumption for the coming months. It is important to consider that the index allows anticipating the behavior of consumption in certain co...

Politics: The National Development Plan—where is Mexico headed?
MEXICO · Report · 28 Apr 2025

Mexico’s immediate future will largely be determined by the National Development Plan (NDP). The 2025-2030 version of the plan was recently approved by Morena and its allies in Congress. The plan had sparked optimism in some business circles given the perception—and hope—that President Claudia Sh...

Mexico Macro Monitor: In the first quarter of 2025, the trade balance recorded a high surplus due to an increase in non-automotive manufacturing exports and a reduction in consumer and capital imports
MEXICO · In Brief · 28 Apr 2025

In January-March 2025, the trade balance recorded a surplus of 1,097 USD million which compares to a 2,706 USD million deficit in the same period of the previous year. This result meant that the negative trade balance observed in January was offset by surpluses in February and March. CHART 1 Trad...

Mexico Macro Monitor: The Global Indicator of Economic Activity shows very weak annual growth (0.5%) as of February
MEXICO · In Brief · 25 Apr 2025

The Global Indicator of Economic Activity shows very weak annual growth (0.5%) as of February, with a 1.0% monthly increase using seasonally adjusted figures The Global Economic Activity Index (IGAE) continued to show weak annual growth in February 2025 (0.5%), after expanding by 0.2% in January ...

Mexico Macro Monitor: Inflation rebounds, Banxico should think twice about relaxing monetary policy in May
MEXICO · In Brief · 24 Apr 2025

Annual inflation in the first half of April rebounded due to increases in both core and non-core inflation, erasing the progress made earlier in the year… ●Consumer price inflation in the first half of April rose to an annual rate of 3.96%, approaching December 2024's level of 3.99%.●The core inf...