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Economics: Rising consumer inflation driven by PPI, combined with discordant monetary policy, make for a complex scenario
MEXICO · Report · 16 Jun 2025

Annual inflation in Mexico reached 4.42% in May 2025, with core inflation propelled to 4.06% by rising merchandise and services prices. At the same time, the non-core component increased 5.34% annually, driven especially by meat products (8.25%). Yet despite rising inflation, Banxico has lowered ...

Politics: Morena’s vote was way lower than expected in the Durango and Veracruz municipal elections
MEXICO · Report · 16 Jun 2025

On June 1, the country held its first judicial elections, along with municipal races in Durango and Veracruz. Normally these state elections would not spark much interest nationally. This time, however, the races and their results attracted attention as a possible bellwether to gauge Morena’s for...

Economics: Labor data mirrors struggling economy
MEXICO · Report · 10 Jun 2025

Employment remains in a clear slowdown that began last year and aligned with the weakening of the economy as a whole. The employed population decreased -0.2% yoy in the first quarter and then increased 0.2% in April, bringing the cumulative slippage for the first four months of the year to an ann...

Politics: Judicial elections—a setback for democracy and success for the 4T’s authoritarian impulses
MEXICO · Report · 09 Jun 2025

Mexico’s first ever judicial elections were held on June 1. While they were significant for a variety of reasons, there were no big surprises. The elections were the concretization of Morena, AMLO, and Claudia Sheinbaum’s judicial reform, justified as a way of correcting the “country’s universall...

Politics: High profile CDMX killings spark nationwide concern
MEXICO · Report · 02 Jun 2025 · 1 response

In a country accustomed to alarming levels of violence and a staggering death count, Mexico was nevertheless shocked by the May 20 murder of two close collaborators of Clara Brugada, head of the Mexico City government. The killing of Brugada’s personal secretary and a close advisor was well plann...

Economics: News and indicators as of May point to further economic stalling
MEXICO · Report · 02 Jun 2025

Revised first quarter GDP data showed the economy sputtering to a 0.6% yoy seasonally adjusted rate of growth while all components of industrial activity contracted during the same period. In most branches of activity, the economic indicators for March and those available for April show a greate...

Politics: Ties between organized crime and political figures pose a major challenge to Mexico’s stability and future
MEXICO · Report · 27 May 2025

A key point of contention between the U.S. and Mexican governments has been the link between organized crime and key public officials and politicians. While tariff disputes have their ups and downs, this claim has been a constant for Washington, but has resulted in an unambiguous denial on the pa...

Economics: First quarter GDP and March IGAE anticipate further weakening for the remainder of the year
MEXICO · Report · 27 May 2025

Last week saw the release of revised GDP data for the first quarter of 2025, which showed a 0.6% seasonally adjusted annual rate of growth. The week also saw the IGAE for March, which reported a -0.1% annual decline. In most branches of activity, the economic indicators for March and those availa...

Economics: Familiar official pledges at the Banking Convention fail to address problems in credit access for MSMEs
MEXICO · Report · 19 May 2025

At the latest annual Banking Convention, the Sheinbaum administration served up the familiar petitions to facilitate access to credit for MSMEs (micro, small and medium-sized enterprises) and lower interest rates for that segment of the productive sector. Easier said than done, as history has sho...

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...