Geri
The Mexican economy faced the biggest downturn in the last 4 years. Gross domestic product declined by 0.6 percent in the three-month period ended 31 December compared to the previous three-month period, while it increased by 0.5 percent compared to a year ago. In the report published by the Central Bank, Mexico, the second largest economy in Latin America, stated that exports in manufacturing sectors other than the automotive sector also declined. Excluding the loss of dynamism in the manufacturing sector's exports, the Ministry of Finance attributed some of the weakening in the economy to drought conditions, which led to the worst performance of the agricultural sector in a quarter of a century. The Mexican economy is going through difficult times due to domestic and external economic factors. US tariff concerns, political and tight fiscal conditions are among the main risk factors negatively affecting growth. Among Mexico's important agenda items at the moment items is the issue of whether or not US President Donald Trump will implement the general tariff decision of 25 percent on exports. According to the quarterly report published by the Central Bank last week, the 2025 gross domestic product growth forecast was decreased from 1.2 percent to 0.6 percent. The growth forecast for 2026 remained at 1.8 per cent.
