The economy of Mexico, a country led by Claudia Sheinbaum, grew in line with the expectations in the second quarter as the bankers Centrals extend a cycle of interest rate cuts to boost the activity facing winds against, including the volatility of global trade.
The gross domestic product (GDP) increased 0.6% compared to the previous three months, Coinciding with the estimated median in a Bloomberg survey, according to the final data published on Friday by the National Statistics Institute. The figure is slightly lower than the preliminary reading of 0.7% reported at the end of July. Compared to the previous year, the economy remained stagnant.
The second largest economy in Latin America avoided US tariff increases planned for early August, even when the administration of US President Donald Trump imposed an increase to Canadian products. However, Investors are less optimistic about the growth of Mexico than in previous years, and Trump’s economic policies, called “America first”, They have diminished the attractiveness of the “nearby location” for companies that seek to settle in Mexico to be closer to American customers.
Conversations with the United States have left Mexico with a 25% tax on non-commercialized goods under the North American Free Trade Agreement (T-MEC), The agreement that followed the NAFTA agreements of the 1990s. Steel, aluminum and a part of cars are also affected by global tariffs, although exports have remained solid. Countries are expected to sign a security agreement in the coming weeks.
The Central Bank of Mexico cited the weak economic growth, Labor market slack and a stronger weight in its decision to extend the reductions in interest rates this monthaccording to the minutes of the meeting published on Thursday.
The limited public spending, part of President Claudia Sheinbaum’s plan to reduce the deficit of the levels that reached in the 2024 election yearhas led to less construction projects employment generators such as those seen above.
The economy avoided a technical recession in early 2025, with an expansion of 0.2 % in the first quarter. Analysts now claim that the probability of a recession in the second half of the year is low. Mexico has sought to reduce imports as part of a national strategy that includes the creation of industrial parks in different parts of the country, but this plan is still in its initial stages.
The Government has also implemented an aggressive tax collection strategy to persecute companies that have not paid and developed a debt reduction plan for the state oil company Petróleos Mexicanos. Exports increased at the beginning of the year, since companies tried to transport their products through the border between the United States and Mexico before the imposition of new tariffs.
