Mexico’s financial system grew 1.8% in January 2025 in comparison with the identical month in 2024. This knowledge comes from preliminary studies by the Nationwide Institute of Statistics and Geography (INEGI).
This modest improve alerts a fragile restoration following a difficult 2024, when annual GDP progress slowed to 1.3% from 3.2% in 2023. Month-over-month, financial exercise rose simply 0.1% in comparison with December 2024, underscoring the sluggish tempo of enchancment.
The information comes from the Indicador Oportuno de la Actividad Económica (IOAE), which supplies early estimates of financial efficiency forward of the extra detailed Índice International de la Actividad Económica (IGAE).
The figures spotlight uneven progress throughout sectors. Manufacturing and industrial exercise stay constrained by weaker demand from the US, Mexico’s largest buying and selling accomplice.
In the meantime, companies, supported by non-public consumption, have proven resilience. Shopper spending rose 2.7% month-over-month in January, pushed by elevated demand for items and companies similar to meals and tourism.
Inflationary pressures have eased considerably, providing some reduction to companies and households. Annual inflation fell to three.59% in January, its lowest degree in 4 years and inside the central financial institution’s goal vary of two%-4%.
Nevertheless, core inflation edged up barely to three.66%, indicating persistent value pressures that might complicate financial coverage choices. Regardless of these developments, progress forecasts for 2025 stay cautious.
Citi just lately lowered its GDP progress projection for Mexico to 1%, citing dangers similar to slowing U.S. industrial manufacturing, fiscal tightening, and political uncertainty following the June 2024 elections.
Whereas nearshoring tendencies current long-term alternatives for manufacturing and logistics, their instant influence stays restricted. This knowledge underscores the fragile steadiness policymakers should strike between fostering progress and sustaining stability as Mexico navigates ongoing home and world challenges.