The Mexican economy has been significantly affected by heightened global uncertainty and changes in United States trade policies. Growth has moderated in 2025, with non-automotive exports and private consumption providing the main support. Safeguarding macroeconomic stability and reinvigorating growth, after two decades of modest performance, are critical priorities. Reducing the fiscal deficit through credible measures on both the spending and revenue sides, embedded within a sound medium-term fiscal framework, would help preserve fiscal stability. Channelling additional tax revenues toward productivity-enhancing investments would strengthen growth prospects. Further strengthening efforts to combat crime, a major concern for firms and citizens, is essential to foster investment and growth. Labour informality remains widespread, and boosting skills and facilitating women’s employment through affordable, high-quality early education and care can help reduce informality. Mexico has recently pledged to achieve net-zero emissions by 2050, which will require unlocking its considerable renewable energy potential. Strengthening adaptation is another urgent priority given Mexico’s high vulnerability to climate change. Mexico’s digital transformation offers major opportunities to boost productivity. Realising these opportunities requires addressing persistent challenges, including high concentration in the mobile telecommunications market, low digital adoption among firms, cybersecurity vulnerabilities, and limited digital skills.
SPECIAL FEATURE: Boosting digitalisation
