Mexico’s 2026 Budget Aims at Deficit Cuts, Infrastructure

This week in finance news, the government’s 2026 Economic Package outlines measures for deficit reduction, infrastructure investment, and expanded tax oversight, while remittance flows come under pressure from US migration policy changes. Meanwhile, energy allocations, fintech expansion, and cross-border financial strategies highlight the sector’s shifting priorities across Latin America.

More news below:

Mexico’s 2026 Budget Targets Fiscal Reform and Major Projects

Just days after President Claudia Sheinbaum delivered her first government report, the Ministry of Finance and Public Credit (SHCP) unveiled Mexico’s 2026’s Economic Package. The plan centers on fiscal consolidation, selective tax adjustments, and major infrastructure projects. The SHCP forecasts GDP growth of 0.5%–1.5% in 2025 and 1.8%–2.8% in 2026. Inflation is projected to ease from 3.8% in 2025 to 3.0% in 2026, while interest rates could fall from 7.3% to 6.0%. The deficit is expected to shrink from 5.7% of GDP in 2024 to 4.1% in 2026, stabilizing debt at 52.3% of GDP.

IIF Warns US Migration Shift Could Cut Remittances by 13% by 2026

The migration policy implemented by the United States this year is affecting both its own economy and those of Latin American countries, according to the economic research unit of the Institute of International Finance (IIF). With the more restrictive migration policy currently in place, remittance flows are expected to gradually decline, falling by 3% to 4% this year compared to last year’s record levels. The downward trend will continue until remittances are projected to be 13% lower in 2026.

Peru’s Do Payment Launches in Mexico, Eyes US$15 Million in Deals

Do Payment, a Peru-based financial technology company, has officially entered the Mexican market, marking the first step in its regional expansion strategy. The fintech specializes in real-time payment and payout services and aims to strengthen its footprint across Latin America. Its payment collection service, Do Pay, will debut in Mexico, supported by three key factors: a growing digital ecosystem, rising demand for integrated payment solutions, and an evolving regulatory framework.

Mexico Expands Fintech Tax Oversight in 2026 Economic Package

Mexico’s 2026 Economic Package includes a proposal to expand tax oversight to financial institutions beyond traditional banks, including fintech firms. The reform to the Federal Fiscal Code (CFF) would replace the term “bank account statements” with “financial institution account statements”, allowing the Tax Administration Service (SAT) to monitor account activity across fintechs and other non-bank entities.

Mexico’s 2026 Budget Boosts PEMEX, CFE Sees Largest Allocation

The Mexican government has proposed a 2026 budget of MX$517.4 billion (US$9.6 trillion) for Petróleos Mexicanos (PEMEX), marking a 7.7% increase in real terms compared with the MX$464.3 billion approved for 2025. For the Federal Electricity Commission (CFE), the administration of President Claudia Sheinbaum requested MX$554.6 billion, a 1.8% decrease from 2025. Despite the cut, this would be the largest allocation for CFE since the start of the Cuarta Transformación government in 2019.