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COUNTRY INSIGHTS

Economics: Employment growth at the start of 2026 remains weak despite a slight uptick in economic activity
MEXICO · Report · 24 Mar 2026

The total employed population in Mexico as of January 2026 saw weak growth of 0.4% YoY, after remaining at low growth rates throughout 2025, when it increased by an average of 0.7%. While last year the weakening of employment was in line with the overall stagnation of the economy, in January 2026...

Politics: New Electoral Reform proposal—what is President Sheinbaum's "Plan B" about?
MEXICO · Report · 23 Mar 2026

Following the rejection of President Sheinbaum’s initial constitutional reform on electoral matters—opposed by her allies PT and PVEM, who feared severe losses in funding and congressional seats—she submitted “Plan B” to the Senate last week. This more limited proposal seeks to “make democracy ch...

Politics: Morena prepares for 2027 with strategies aimed at gaining an advantage over the opposition
MEXICO · Report · 16 Mar 2026

Morena is moving aggressively to prepare for the 2027 elections. During its National Political Council on March 7, the party approved an accelerated calendar and rules for selecting candidates for the 17 governorships at stake, while simultaneously strengthening its territorial structure. By laun...

Economics: Pemex posts mixed results for 2025, facing big challenges ahead
MEXICO · Report · 16 Mar 2026

At the end of last month, Pemex released its operating and financial results for the close of 2025. The report was presented under the company’s new legal status as a “public company” — previously known as a “state productive enterprise” — and within the framework of the reforms and new legislati...

Economics: Indicators published in February point to a weak economic recovery for 2026, with inflation above Banxico's target and deteriorating public finances
MEXICO · Report · 09 Mar 2026

Economic indicators published in February suggest that Mexico will experience a moderate recovery in 2026 following the stagnation observed in 2025, although this rebound is shaping up to be weak and constrained by multiple obstacles. Private consumption shows signs of gradual recovery, driven la...

Politics: Electoral Reform proposed by Sheinbaum represents a democratic setback
MEXICO · Report · 09 Mar 2026 · 1 response

On March 4, 2026, President Claudia Sheinbaum submitted her constitutional electoral reform initiative to the Chamber of Deputies, representing the final outstanding component of "Plan C" announced by Andrés Manuel López Obrador in February 2024. Following two previous failed attempts—a rejected ...

Economics: US Supreme Court ruling on tariffs—implications for Mexico
MEXICO · Report · 03 Mar 2026

The recent imposition of 15% across-the-board tariffs by President Trump in response to the U.S. Supreme Court's ruling invalidating prior specific tariffs does not affect Mexico as products entering under the USMCA remain exempt, as they previously were from reciprocal tariffs. Consequently, Mex...

Politics: The death of “El Mencho” reshapes the Mexican security landscape
MEXICO · Report · 02 Mar 2026

On Sunday, February 22, 2026, the Mexican Army carried out a well-planned operation in Tapalpa, Jalisco (130 km from Guadalajara), with support from US intelligence (JITF-CC), to capture Nemesio Oseguera Cervantes, alias "El Mencho," leader of the Jalisco New Generation Cartel (CJNG). The kingpin...

Results of the military operation to arrest Nemesio Oseguera, "El Mencho," Leader of the CJNG
MEXICO · In Brief · 24 Feb 2026

Initial notes on its implications On Sunday, February 22, Mexican armed forces carried out an operation to apprehend Nemesio Oseguera Cervantes, alias “El Mencho,” the leader of the Jalisco New Generation Cartel (CJNG)—Mexico’s most powerful and far-reaching criminal organization, heavily engaged...

Politics: Corruption perception index remains at a low level as scandals continue to emerge
MEXICO · Report · 23 Feb 2026

In 2025, Mexico scored 27 points (out of 100) on Transparency International's Corruption Perceptions Index, ranking 141st out of 182 countries. This represents a minimal improvement of one point compared to 2024 but maintains the negative trend seen since 2014 and positions the country among the ...

Economics: Sheinbaum's new investment plan lacks the foundations to achieve sustainable economic growth
MEXICO · Report · 23 Feb 2026

In early February, President Claudia Sheinbaum presented the Investment Plan for Development with Well-being, which would involve a total amount of $5.6 trillion MX pesos (close to $325.4 billion USD) to be executed between 2026 and 2030. Of that amount, in 2026 $722 billion MX pesos in additiona...

Economics: Annual core inflation rose in January; it will most likely remain above 4% in 2026
MEXICO · Report · 17 Feb 2026

Consumer inflation stood at 3.79% annually in January 2026, 10 basis points above December 2025 (3.69%) and very similar to the 2025 average, in a clear sign that it is not on a downward trend. The annual increase in prices in January was caused by the core component (as has been the case in rece...

Politics: Mexico's growing political vulnerabilities
MEXICO · Report · 17 Feb 2026

In recent years, various domestic policies implemented initially by the López Obrador administration and subsequently maintained by Claudia Sheinbaum's government have exacerbated Mexico's vulnerabilities, deepening the historical power asymmetry with the United States. This has facilitated acqui...

Economics: 2025 Year-end public finance figures signal risks for 2026 and beyond
MEXICO · Report · 10 Feb 2026

The full-year 2025 figures show a fiscal deficit exceeding the official target by MXN $285 billion, closing at MXN $1.7 trillion, which is equivalent to 4.8% of GDP, down from 5.9% of GDP in 2024. This imbalance means the public sector as a whole increased its financial obligations by a non-trivi...

Politics: Recent changes in key political positions imply a new Sheinbaum-AMLO power balance
MEXICO · Report · 09 Feb 2026

Recent changes—first at the Financial Intelligence Unit in early August of last year, then at the Attorney General's Office in late November, and most recently last week on Sunday, February 1st, in the coordination of the Morena's Senate Parliamentary Group—empower President Claudia Sheinbaum vis...

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