Overcoming a disappointing first quarter, Mexico is now one of the OECD’s top-growing economies

August 26, 2026

highway construction — Mexico's 1.4% growth in this year's second quarter after a first-quarter contraction represented its strongest expansion since early 2022, enough to put it at No.6 in growth among OECD countries. (Presidencia / Cuartoscuro.com)

Mexico’s economy grew three times faster than the Organization for Economic Co-operation and Development (OECD) average in the second quarter of the year, making it the sixth fastest-growing OECD economy, according to preliminary figures published Monday by the 38-member group of mostly high-income democracies.

The Mexican economy grew by 1.4% from April to June, according to Mexico’s National Institute of Statistics and Geography (INEGI), much higher than the OECD average of 0.5%, which itself had risen slightly from its 0.4% rate in the first quarter.

farmland — Primary activities, such as farming, led the second-quarter expansion that lifted Mexico into the OECD’s top 10 second-quarter growth economies. (Meg Pier / Unsplash)

In the second quarter, 27 OECD member states recorded growth rates, with Ireland’s being the highest at 3.9%, followed by Israel at 3.6%. Switzerland, Slovenia, Lithuania and Mexico followed, while Austria, Belgium and Chile reported no change in their GDP.

Several members of the G7 —a smaller group of the world’s most advanced industrial nations — experienced a slowdown in the second quarter, including Germany, Italy, Japan, the United Kingdom and the United States. GDP growth in the G7 fell to 0.3 percent in the second quarter of 2026, compared to 0.4 percent in the first quarter of the year, the OECD reported.

The OECD cited weak export growth, a decline in the livestock industry, and a decrease in retail consumption as the primary causes of the second-quarter economic slowdown in the United States.

Mexico’s economy, on the other hand, improved in the second quarter compared to the first, rebounding from a revised 0.3% contraction in the first quarter, according to INEGI, as the country posted its strongest expansion since early 2022.

However, the 1.4% second-quarter growth was slightly below INEGI’s preliminary estimate of 1.5% published in July.

Primary activities, such as farming, fishing and mining, led Mexico’s economic growth, posting an expansion of 2.4%.

Meanwhile, Mexico’s main regional competitor, Brazil, saw economic growth of just 0.2% in the second quarter compared with the previous three-month period, the country’s central bank reported in August.

In annual terms, Mexico’s economy expanded 2.1% in the second quarter, according to INEGI.

However, inflation remains a threat, with Mexico’s 12-month inflation rate reaching 3.26% in early August, up from 3.1% a month earlier.

While the inflation figure is within the Bank of Mexico’s target range of 3%, give or take one percentage point, persistent inflation alongside signs of economic improvement could lead to ⁠a rate hike, despite the bank’s recent caution.

With reports from La Jornada, Contra Replica and Reuters