Mexican Economy Slows Down in June Amid Uncertain Outlook

INEGI data reveals that the Mexican economy continued its monthly slowdown in June, with the Economic Activity Nowcast Indicator (IOAE) registering a modest 0.2% growth compared to the previous month. This marks the second consecutive month of deceleration, following 0.5% growth in April and 0.3% in May. The growth in June was driven by expansions in both the secondary (industrial) and tertiary (services) sectors, each increasing by 0.2%.

A report from Monex highlighted that while economic pressures eased across the main sectors, the services sector showed moderation compared to its performance last year.

Mexico faces a mix of internal and external uncertainties this year. Tariffs imposed under Donald Trump’s administration, along with scrutiny over migration and organized crime, continue to impact the country. Internally, judicial reforms have raised questions about the functioning of newly appointed judges under Sheinbaum’s government.

The Ministry of Finance maintains a growth forecast between 1.5% and 2.3% for 2025. However, other organizations expect slower growth. IMEF projects 0.1%, aligning with private analysts surveyed by Banxico, while the OECD forecasts GDP growth of 0.4% this year.