Mexico's Economy Contracts More than Expected in First Quarter
Inegi said the decline was the first since the pandemic, as all three major sectors contracted and year-on-year growth slowed to 0.2%.
- Inegi reported a 0.8% Mexico GDP contraction for the first quarter of 2026, reversing the 0.9% expansion in 2025 and marking the worst performance since the pandemic recovery period.
- Cyclical Dip Gabriela Siller, chief economist at Banco Base, argued that Mexico faces a Structural Problem driven by domestic forces, noting North America grew 2% in the same quarter.
- All three sectors contracted, with Agriculture falling 1.4%, as Bloomberg analysts surveyed found that none had expected positive growth before the release.
- Bank of Mexico governor Victoria Rodr acknowledged "marked weakness" in a Senate appearance, aligning with BBVA research documenting formal job creation deterioration.
- Mexico has slipped in World Bank rankings, missing The Plan target, while structural reforms remain elusive ahead of the USMCA review with business confidence below expansion thresholds for 13 consecutive months.
14 Articles
14 Articles
Economic activity in Mexico fell by a ‘toboggan’ at the beginning of the year, affected by the widespread weakness of the three major sectors, according to the timely estimate of GDP published on Thursday by the INEGI.In the January-March 2026 period, GDP contracted to a quarterly rate of 0.8 percent with seasonally adjusted figures, which virtually offset the growth of 0.9 percent in the previous quarter.In addition to the fact that the data wa…
Mexican economy contracts 0.8% in the first quarter of the year
The Mexican economy contracted 0.8% in the first quarter of 2026 compared to the previous three-month period, according to seasonally-adjusted preliminary data published on Thursday by the national statistics agency INEGI. Compared to the first quarter of 2025, GDP increased 0.2% in seasonally-adjusted terms between January and March and 0.1% in original terms. The quarter-over-quarter contraction was the worst result for the Mexican economy in …
Mexico Economy Contracts for First Time Since Pandemic in Q1
Key Points —Mexico GDP Q1 2026 fell 0.8% quarter-on-quarter in Inegi’s flash estimate, reversing the 0.9% expansion in Q4 2025. —All three sectors contracted: agriculture -1.4%, industry -1.1%, services -0.6%. Year-on-year growth was just 0.2%. —The US economy grew 2% in the same quarter, widening the divergence between North America’s two largest economies. Deep Dive […] The post Mexico Economy Contracts for First Time Since Pandemic in Q1 appe…
GDP contracted 0.8% in relation to the previous quarter, seasonally adjusted, reported Inegi; services, industrial and agricultural production also declined
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