Bank of Mexico Raises 2026 GDP Growth Forecast to 1.6% From 1.1%

This adjustment comes despite concerns about continued weakness in investment until the latter half of 2026, influenced by uncertainties surrounding trade with the United States and the upcoming review of the United States-Mexico-Canada Agreement. The central bank also noted that risks to growth remain predominantly on the downside, citing potential impacts from global geopolitical conflicts and the possibility of slower-than-anticipated economic expansion in the U.S. Looking further ahead, inflation is expected to reach the official target of 3% by the second quarter of 2027.

The Mexican economy had previously expanded by 0.6% in 2025, primarily driven by the services sector, while industrial activity linked to the U.S. experienced a decline.