Mexico Economic Outlook by OECD

OECD has relased its Report on the Economic Outlook of Mexican Economy in 2026, this report shows important information:

The economy is projected to grow by 0.8% in 2026 and 1.8% in 2027. Growth will be primarily driven by domestic demand, with low unemployment supporting private consumption. Lower interest rates will gradually support private investment, but the recovery will be gradual given ongoing domestic and global policy uncertainties.

This report includes the following content：

Activity has significantly weakened and inflation remains above target

Monetary policy has eased further and fiscal consolidation is underway

Growth will remain moderate

Boosting growth requires deeper structural reforms

Activity has significantly weakened and inflation remains above target

After solid growth at the end of 2025, economic activity weakened sharply in early 2026 amid slowing domestic demand and heightened trade uncertainty, with GDP contracting by 0.6% (quarter-on-quarter, seasonally adjusted). The weakness was broad-based, affecting industry, agriculture and services.

Mexico is affected by the evolving Middle East conflict mainly through indirect channels, particularly via its impact on global growth.

Data source: OECD official website report, Under Press

Monetary policy has eased further and fiscal consolidation is underway

The central bank has continued its monetary easing cycle, lowering the policy rate to 6.50% in May.

Growth will remain moderate

The economy is projected to expand by 0.8% in 2026 and 1.8% in 2027.

Boosting growth requires deeper structural reforms

Introducing a medium-term fiscal framework would strengthen expenditure planning and prioritisation, helping to improve the quality of public spending and channel additional public spending towards productivity-enhancing areas, such as infrastructure, education or digitalisation.

Click here to view the full report.

OECD Economic Outlook Under Pressure.pdf