Mexico GDP Grows 3.2% Annually Despite US Tariffs
Mexico's economy grew 3.2% annually in the third quarter of 2026, exceeding analyst expectations and suggesting interest rates will remain steady.
The National Statistics Institute reported that Mexico's economy grew 0.9% in the third quarter of 2026 compared to the second quarter, and 3.2% compared to the same period in 2025. These flash estimates surpassed analyst projections of 0.7% quarterly and 2.5% annual growth.
Growth was primarily driven by industry, which rose 0.8%, and tertiary activities including trade and services, which increased 1.1%. In contrast, the farming, livestock, and fishing sectors contracted by 0.4% during the quarter.
This economic expansion occurred while the United States maintained tariffs of 50% on steel and aluminium and 25% on cars. The strong data suggests the Bank of Mexico has little reason to implement immediate rate cuts, a view supported by prediction markets indicating a high probability that rates will remain unchanged in November.
