Mexico’s economic activity could lose momentum in the coming months, given the persistence of factors limiting investment and keeping growth expectations weak, the Center for Economic Studies of the Private Sector (CEESP) warned on Monday.
The private sector organization indicated that after a first quarter marked by economic weakness, in which the Gross Domestic Product (GDP) registered a quarterly drop of 0.6 percent and annual growth of just 0.4 percent, there are still no clear signs of a sustained recovery.
Several specialists also continued to lower their growth forecasts, while business and consumer confidence indicators remained at cautious levels.
“In this environment, it is possible that signs of moderation in the economy could emerge in the coming months, such that growth expectations could remain unchanged or possibly continue to be adjusted downward,” the CEESP noted in its weekly analysis.
The CEESP added that business and consumer confidence continues to be affected by uncertainty associated with internal factors such as insecurity and the weakening of the rule of law, as well as external elements that influence investment decisions.
Among the latter, it mentioned the recent decision by the United States to conduct annual reviews of the United States-Mexico-Canada Agreement (USMCA) free trade agreement, instead of ratifications for longer periods, a situation that increases uncertainty for the productive sector.
“Business and consumer confidence levels, although recovering marginally, are not yet in positive territory. This could foster a weak investment environment that inhibits greater and sustained economic growth,” the CEESP concluded.
Mexico’s economy expanded by 0.5 percent in 2025, supported mainly by the services sector due to the weakness of industrial activity linked to the United States.
For the current year, the Mexican government estimates economic growth of between 1.8 and 2.8 percent.
Source: udgtv
