Mexico’s economy grew 3.3% in annual seasonally adjusted terms in July, the strongest growth of any month so far in 2026.
The national statistics agency INEGI reported the annual growth rate last Thursday, one month after it published data showing that Mexico’s economy expanded 1.9% in annual terms in the second quarter of 2026.
Annual growth in Q1 was just 0.4%.
INEGI also reported that month-over-month growth was 0.8% in July, the second-best result this year after a 1.5% sequential expansion in April. Mexico’s economy stagnated on a month-over-month basis in June, recording 0% growth. It contracted 0.3% in May compared to April.
In the first seven months of 2026, Mexico’s economy grew 1.5% annually, according to INEGI.
Andrés Abadía, chief Latin America economist at the British firm Pantheon Economics, said that the growth data for July “puts the third quarter in a much stronger position than expected.”
However, he added that “one month of strong results is not enough to predict a sustained recovery.”
Services sector fuels growth in July
The tertiary or services sector grew 4% annually in July, according to INEGI, while the secondary sector, which includes manufacturing, construction, mining and electricity generation, expanded 2.4%. The primary sector, which includes agriculture and fishing, contracted 0.6% on a year-over-year basis in July.
On a month-over-month basis, the tertiary sector grew 1.2% in July, while the secondary sector expanded 0.5%. The primary sector contracted 1.1% compared to June.
Other need-to-know economic data
- The Bank of Mexico reported an end-of-day USD:MXN exchange rate of 18.06 on Tuesday. The Mexican peso has depreciated 5.9% this month after ending August at 16.99 to the US dollar.
- Mexico’s annual headline inflation rate in the first half of September was 3.42%, up from 3.26% across August.
- Mexico’s export revenue totaled a record US $549.4 billion in the first eight months of 2026, an annual increase of 29.3%.
- The Bank of Mexico’s key interest rate is currently set at 6.50%.
With reports from El Economista and La Jornada
