Wednesday, January 21, 2026

The economy expanded 2.3% in December, indicating annual growth below 1%

The Mexican economy grew 2.3% in annual seasonally adjusted terms in December and 0.2% compared to November, according to preliminary data published by the national statistics agency INEGI on Wednesday.

INEGI also published updated data for November showing 1.2% annual growth and 0.1% month-over-month growth.

shoe factory
Mexico’s secondary sector (which includes manufacturing) grew 1.2% annually in December. (Mario Jasso/Cuartoscuro)

According to Gabriela Siller, director of economic analysis at Banco Base, the data indicates that the Mexican economy recorded annual growth of 0.65% in 2025, a marked slowdown compared to the 1.5% expansion in 2024. Siller also said that the data — which is subject to revision — indicates the economy grew 1.36% in annual terms in the fourth quarter of last year and 0.97% compared to the previous three-month period.

INEGI’s preliminary data shows that Mexico’s secondary sector (manufacturing and construction) grew 1.2% annually in December, while the tertiary sector (services) expanded 2.9%. INEGI didn’t provide data for the primary sector (agriculture and mining).

On a month-over-month basis, the secondary sector grew 0.1% in December while the tertiary sector expanded 0.2%.

The overall month-over-month growth rate of 0.2% in December was the best result for the Mexican economy in the final month of the year since 2023. In December last year, the economy contracted 1% compared to the previous month, according to final data.

Other need-to-know economic data 

  • The Mexican peso was trading at 17.49 to the US dollar at 1:20 p.m. Mexico City time, according to Bloomberg. The peso is stronger now than at any point in 2025.
  • Mexico’s headline inflation rate was 3.69% in December, the lowest end-of-year level in five years.
  • The Bank of Mexico’s benchmark interest rate is currently set at 7%. The bank’s board will hold its next monetary policy meeting on Feb. 5.

With reports from Expansión and El Economista 

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