Mexico: Economy recovers in Q2 2026
GDP reading: Mexico’s GDP increased 1.5% in seasonally adjusted quarter-on-quarter terms in Q2, following a 0.6% contraction in the previous quarter. Q2’s reading was the strongest since Q4 2020.
Drivers: Compared to the previous period’s data, figures in Q2 improved for the services sector (+1.5% on a seasonally adjusted quarter-on-quarter basis vs -0.4% in Q1), the industrial sector (+1.6% vs -1.0% in Q1) and the primary sector (+3.3% vs -1.7% in Q1).
Panelist insight: On the outlook, Goldman Sachs’ Alberto Ramos said:
“Going forward, we expect activity to face headwinds from soft business confidence and peaking credit cycle. On the positive side, generous minimum wage increases, a resilient labor market, and public works should offer some support to domestic demand. We expect investment to continue to be impacted by both domestic and external uncertainty, in particular related to trade-policy direction in the US and the USMCA review.”