Mexico Economy Grows 1.4 Percent in Second Quarter

The National Institute of Statistics and Geography reported that Mexico's economy grew by 1.4 percent in the second quarter of 2026. This growth marks a recovery from a 0.3 percent contraction during the first quarter of the year.

Construction and services sectors drove the expansion, supported by strong exports that helped offset a 19-month decline in gross fixed investment. Shipments abroad increased by more than a third year-over-year in June, resulting in a trade surplus of $4.09 billion.

Despite the economic rebound, annual inflation rose to 3.26 percent in early August. The Bank of Mexico maintained its benchmark interest rate at 6.5 percent to address persistent inflationary pressures linked to the domestic service sector and the Iran war. Policymakers stated that current borrowing costs remain appropriate.