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Mexico

Mexico's economy in 2025 is facing a challenging environment with modest growth projected at around 0.2% for the year, following a slowdown from 1.5% growth in 2024. The economy is showing mixed signals: while the agricultural sector has seen notable expansion, industrial production and formal employment have weakened amid uncertainties linked to trade tensions and tariff policies, particularly with the United States. Inflation is expected to rise slightly to about 3.9%, and the peso has strengthened modestly against the dollar.

The services sector remains a significant contributor, accounting for over 60% of GDP, with wholesale and retail trade, real estate, transport, and financial services leading the way. Manufacturing, particularly automotive and food industries, plays a key role but faces headwinds from international tariffs and supply chain disruptions. Exports have grown moderately, buoyed by manufacturing output, although the primary sector, including agriculture and mining, saw some contraction in early 2025.

Investment levels remain subdued due to fiscal consolidation and regulatory uncertainties, impacting formal job creation and private sector confidence. Consumption is also slowing due to weaker wage growth. The government continues efforts to stabilize public finances as the public sector borrowing requirements are expected to rise slightly.

Despite near-term challenges, Mexico's large and diversified economy benefits from a strategic geographic location, extensive free trade agreements, and a robust industrial base, including a growing high-tech manufacturing sector. The country's sizable domestic market and skilled labor force offer potential for recovery and growth as external uncertainties ease. Structural reforms aimed at improving productivity, infrastructure, and innovation are ongoing to enhance competitiveness.

Overall, Mexico's 2025 economic outlook is cautious but not recessionary, with key sectors like manufacturing and services supporting resilience, while growth depends largely on external trade conditions and domestic policy stability. The country remains an important manufacturing and export hub in the Americas, with long-term prospects tied to fiscal discipline, regulatory reforms, and stronger integration into global value chains.

Payment methods in Mexico: