Lack of PPPs Limit Mexico’s Economic Development: México Evalúa

Specialists raised concerns about Mexico's 2025 Economic Package, citing reduced investment in infrastructure, health, and security. These reductions could impact economic performance and compromise citizens’ rights.

Investment spending for 2025 is projected at MX$837 billion (US$41.1 billion), representing 2.3% of GDP, the lowest in over a decade, according to México Evalúa. This marks a 12.7% reduction compared to 2024, equivalent to MX$122 billion, primarily affecting road, water, and fuel infrastructure. Analysts from México Evalúa emphasized that these cuts may hinder Mexico’s economic growth, limit future income generation, and reduce the country’s attractiveness for nearshoring investments.

México Evalúa’s specialists noted the absence of new public-private partnership (PPP) projects in the 2025 budget. While 18 PPP projects were inherited from previous administrations in 2024, only 13 are planned for 2025. This approach, combined with the government’s reluctance to implement a fiscal reform or involve the private sector in public investment, was highlighted as a limiting factor for economic development.

Despite the announcement of large-scale passenger rail projects, transportation investment will decrease by 5%, or MX$10 billion, compared to 2024. Additional cuts include a 43% reduction in road infrastructure spending totaling MX$27 billion, a 58% reduction in water projects, and a 9% reduction in hospital infrastructure. However, México Evalúa notes that it is positive that this year, the Ministry of Infrastructure, Communications, and Transportation (SICT) will regain a central role in public works development, taking over from the armed forces.

Security spending will also face significant reductions. The allocation for National Security and Police will decrease by MX$61.9 billion, dropping from 0.7% to 0.5% of GDP. Experts noted that this reduction could affect Mexico’s ability to address domestic security concerns and meet the demands of the United States, Mexico’s main trade partner. 

"The government’s priorities are reflected in its budget. Without adequate resources, proposals remain aspirations. The 2025 Economic Package reflects a survival plan for the government rather than a strategy for economic growth, health, security, or reducing inequality,” stated Mariana Campos, Director General, México Evalúa.