Mexico Faces Largest First-Year Presidential Deficit in Decades

Mexico is set to record its largest fiscal deficit for the first year of a presidential term in at least four administrations, according to the International Monetary Fund’s (IMF) latest Fiscal Monitor report.

Released in Washington, D.C., the report projects a deficit of 3.9% of gross domestic product (GDP) for 2025, the highest since at least 2000 and above the 3.8% registered in 2013 during Enrique Peña Nieto’s government.

The IMF also expects Mexico’s net public debt to reach its highest level since 2006, surpassing even the figures seen during the pandemic. The widening gap, the report said, reflects spending priorities under President Claudia Sheinbaum’s new administration, which took office earlier this year.

The Fiscal Monitor, which reviews public finances in 191 member countries twice a year, underscores that well-targeted fiscal spending can stimulate growth despite tight budget conditions in most economies following the pandemic.

The findings, presented at the IMF and World Bank Annual Meetings this week, will inform discussions on how nations can balance fiscal discipline with policies that support sustainable growth amid global uncertainty.