US Economy Shrinks as Mexico Avoids Recession: Finance Week

This week in finance news: The US economy contracted in 1Q25, while Mexico’s grew by 0.2%, avoiding a recession. UBS predicts the US Federal Reserve may lower interest rates if economic growth weakens further. In Mexico, Banxico will transfer MX$17.9 billion to the SHCP, and crypto platform Bitso has announced it will discontinue the Bitso Card.

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US Economy Shrinks in 1Q25; Mexico Grows 0.2%, Avoids Recession

The US and Mexican economies faced significant challenges in the first quarter of 2025, as trade tensions and tariffs reshaped growth trajectories on both sides of the border. While the US economy contracted for the first time in three years, Mexico achieved a modest 0.2% growth, narrowly avoiding a technical recession.

UBS Predicts Fed Rate Cuts of 75-100 bps if Growth Slows in 2025

Swiss investment bank UBS forecast that the US Federal Reserve will lower its benchmark interest rate by 75 to 100 basis points this year if economic growth continues to weaken. The projection contrasts with recent comments from Fed Chair Jerome Powell, who noted that tariffs imposed by President Donald Trump were “significantly higher than anticipated.” 

Bitso Ends Bitso Card in Mexico, Focuses on Long-Term Solutions

Cryptocurrency platform Bitso announced it will discontinue its Bitso Card product in Mexico on May 26, 2025, as part of a strategic shift toward long-term financial solutions. Launched in March 2023, the Bitso Card enabled users to make payments using cryptocurrency balances, marking an early milestone in the region’s adoption of digital financial tools.

Banxico Sends MX$18 Billion Surplus to SHCP for Debt, Budget Use

Mexico’s Central Bank (Banxico) will transfer an operating surplus of MX$17.9 billion (US$917 million) to the Ministry of Finance and Public Credit (SHCP) this year, marking the first such transfer since 2016, according to its audited 2024 financial statements.

Tiendanube Integrates Kalto to Enhance B2B Payments

Tiendanube, the leading e-commerce platform in Latin America valued at US$3.1 billion, is expanding its fintech capabilities with the integration of Kalto, a Mexico-based B2B payments platform. This move aims to empower entrepreneurs across the region and enhance opportunities for businesses in Latin America's growing e-commerce market.

Spin by OXXO Tops 10.9 Million Users in Mexico's Payment Market

Spin by OXXO, the digital payment platform launched by OXXO in 2021, has exceeded 10.9 million users, the company announced. With over 17,000 stores across Mexico, OXXO ventured into fintech with Spin by OXXO to diversify its offerings and tap into digital finance.