Friday, February 27, 2026
Home Blog Page 51

Government revenues up 4.4% through November

1
A Mexican flag flies near downtown Mexico City
This marks the fifth consecutive year that Mexico has seen growth in revenues during the January-November period. (Moisés Pablo/Cuartoscuro)

Government revenues have exceeded Finance Ministry expectations this year, rising 4.4% through November even as import taxes began to decline late in the year.

This marks the fifth consecutive year that Mexico has seen growth in revenues during the January-November period.

In a Dec. 30 press release, Mexico’s Finance Ministry (SHCP) reported that, during the first 11 months of 2025, revenues exceeded projections by 117 billion pesos (US $6.5 billion). The report indicated that the increase was driven by “the strength of non-oil revenues.”

  • Tax revenues exceeded the 99 billion-peso estimate in the budget (US $5.5 billion), an increase of 4.6% in real terms, the result of a broadening of the tax base, a crackdown on smuggling and the incorporation of digital tools in administrative and auditing processes. 
  • Income tax revenues increased by 5.4%, a result of formal employment growth and higher wages.
  • Collection of Value Added Tax (VAT) saw year-on-year growth of 1.3%, exceeding estimates by 42 billion pesos (US $2.3 billion).
  • Import tax revenues experienced annual growth of 19% in real terms, surpassing projections by 16 billion pesos (US $890 million).

Although the government accumulated 155 billion pesos (US $8.6 billion) in import taxes during the first 11 months of the year, collection slowed down the stretch, and markedly so in November. 

Bloomberg News reported that official data shows that import revenues declined for the first time in two years in August 2025, falling 0.8% year-on-year in real terms.

In September, such revenues rose, registering a real annual increase of 17.2%, but in October that effect was reversed and revenue grew less, at a real annual increase of 6.4%.

The reversal continued into November, as import taxes fell 1.1% year-on-year in real terms.

Congress approves new tariffs on goods from China and non-FTA countries

The SHCP attributed this slowdown to trade adjustments ahead of new tariffs that Mexico will impose on countries with which it does not have trade agreements.

On the other side of the ledger, public spending grew by 91.7%, compared to what was scheduled for the year.

The SHCP also reported that the International Monetary Fund renewed its Flexible Credit Line for Mexico for two years, and reaffirmed its confidence in the strength of the macroeconomic fundamentals as well as the sustainable trajectory of public debt, which has risen steadily under President Claudia Sheinbaum.

Since Sheinbaum took office on Oct. 1, 2024, and through November of this year, Mexico’s debt balance went from 16.8 trillion pesos (US $934 billion) to 18.26 trillion pesos (US $1 trillion). 

At the same time, public and private investment as a percentage of GDP fell to its lowest level in four years, according to the think tank México cómo vamos.

With reports from IMER Noticias, Bloomberg News and México como vamos

Chiapas gets a new state shield, better representing its true identity

0
new Chiapas state shield
The new coat of arms trades the crown for a Maya headdress inspired by King Pakal, featuring a Maya zero symbol, a butterfly and a textile embroidery representing the ancestral worldview.

Chiapas, one of Mexico’s most economically neglected states, has approved a new state coat of arms that replaces the historical design of colonial origin. 

The new shield better represents the Indigenous identity, natural diversity and history of Chiapas, according to a statement from the State Congress. The new design will come into official use on January 1, 2026.

“Its main objective is to visually represent the region’s identity in the state shield, merging its natural, historical and cultural heritage with a focus on reconciliation and preservation of the mestizo history and sustainability,” the Congress said. 

Lawmakers noted that the new elements in the Chiapas coat of arms “reclaim, from a humanist perspective, the people, to give them a voice and strengthen their identity.”

These changes are officially reflected in the Law of the Coat of Arms and Anthem of the State, which was amended following discussions with various social sectors and Indigenous communities. The goal of the reform is to ensure that the shield truly represents the current identity of Chiapas and reflects the future that the state aims to build.

What has actually changed?

The old coat of arms of Chiapas was a colonial-era shield with a red background, two mountain ranges, a river in the center, a golden castle, two lions, and a crown at the top. It represented both the geography of the Sumidero Canyon and the power of the Spanish Crown, as well as the fusion of Indigenous and Spanish cultures.

The new coat of arms replaces the castle with a pyramid, which is the Temple of the Inscriptions of Palenque that symbolizes the archaeological legacy. It also replaces a palm tree with a ceiba tree, which in local mythology is a sacred tree that unites heaven, earth, and the underworld and symbolizes life, spirituality and biodiversity.

The new coat of arms also includes a Maya headdress inspired by King Pakal, which features a Maya zero symbol, a butterfly embroidery and a textile embroidery that represents the ancestral worldview. The Tacaná Volcano and Sumidero Canyon highlight the strength of nature in the territory, its natural wealth, and the historical memory of Indigenous resistance, while a corn plant alludes to the food, economic, and identity foundation of the peoples of Chiapas.

With reports from La Jornada

Welcome 2026 with a 12-grape New Year’s Eve martini

0
12 green grapes on a wooden serving board
Though the tradition originates in Spain, eating 12 lucky grapes at midnight is beloved by many in Mexico. (Ralf Roletschek/GFDL)

It’s the last night of the year in Mexico, a country as alive as its sunsets and as unpredictable as its fireworks. The clock ticks toward midnight, and everyone’s armed: not with champagne flutes or noisemakers, but with grapes. 12 of them, fat, green, juicy and symbolic of the year to come.

How many months of good luck do you want in the new year? Try to eat that many before the bell is finished tolling. The scene looks like a surrealist painting where time and fruit collide.

The New Year’s Eve grapes ritual started in Spain, some time in the early 20th century. Legend has it that a clever bunch of vineyard owners found themselves drowning in surplus grapes. Instead of composting or wine-making, they turned to marketing: eat a grape for each stroke of the clock on New Year’s Eve, they proclaimed, and you’ll ensure good fortune for the twelve months to come. The idea caught fire faster than a dried-out Christmas tree.

12 green grapes on Christmas-themed plate
Green grapes are right at home among sweet end-of-year treats. (Jacinta Iluch Valero/CC BY-SA 3.0)

When the custom crossed the Atlantic, it nestled into the Mexican spirit like carne asada fits into a taco. After all, Mexico is a place where traditions speak louder than words, where the past and present weave together. The twelve grapes became more than a custom— they turned into a hope, a wish, a small act of defiance against the uncertainties of life.

At 11:59, everyone’s ready, grapes in hand. The first bell rings out, and the mouths start moving, swallowing the months like they’re good luck charms for the soul. January goes down easy. March? A little sour. August sticks in someone’s throat, maybe predicting a heat wave or heartbreak. Loud coughing is heard on the October grape: we might have a comrade down. But by the twelfth stroke, the deed is done. When the new year arrives, shiny and full of question marks, the people of Mexico, Spain or anyone who is inclined to take on this vineyard challenge, welcome it with sticky fingers and hopeful hearts.

12-grape martini: A sophisticated celebration

Ingredients

  • 12 green grapes
  • 2 oz vodka
  • 1 oz elderflower liqueur
  • 1 oz Lillet Blanc
  • ½ oz freshly squeezed lemon juice
  • Ice cubes
  • Toothpicks for garnish

Instructions

  1. Thread 12 green grapes onto a cocktail skewer or toothpicks in groups of three or four, depending on the size. 
  2. In a cocktail shaker, combine vodka, elderflower liqueur, Lillet Blanc and lemon juice. Fill the shaker with ice.
  3. Shake vigorously for about 15-20 seconds to ensure everything is well chilled and combined.
  4. Double strain the mixture into a chilled martini glass to achieve a smooth texture.
  5. Place the skewered grapes over the rim of the glass or let them rest elegantly on the side as an edible decoration. For an extra aromatic touch, lightly express the oil from a lemon peel over the drink before garnishing. 

This cocktail works because it’s absurd, elegant and just the right amount of superstitious — like the New Year itself. You’ve got twelve grapes sitting smugly on the toothpicks, a nod to tradition, scarf them down with the 12 strokes of midnight, and enjoy your libation. 

Vodka and Lillet? Pure optimism in liquid form. Elderflower liqueur adds a whisper of floral je ne sais quoi: “What is elderflower? And why is it so good?” Lemon juice brings balance, reminding you that life is equal parts bitter and sweet. Sip slowly, toast the chaos and hope the 12 grapes do their job. Happy New Year! 

Stephen Randall has lived in Mexico since 2018 by way of Kentucky, and before that, Germany. He’s an enthusiastic amateur chef who takes inspiration from many different cuisines, with favorites including Mexican and Mediterranean. His recipes can also be found on YouTube.

Planes, pyramids and baby porpoises: MND’s most-read stories in 2025

0
A Halcón 2.1 light plane flies
The story of the Halcón 2.1 — the first 100% made-in-Mexico plane in 70 years — was one of Mexico News Daily's most-read articles this year. (Gobierno de Celaya)

As we close out an eventful 2025, we’re looking back at the stories that resonated most with our readers throughout the year. From groundbreaking conservation wins to cultural controversies and exciting innovations, these articles captured the diverse tapestry of life in Mexico.

Here are Mexico News Daily’s most-read stories of the year.

1. Mexico’s electric vehicle ‘Olinia’ set to debut at 2026 FIFA World Cup

To kick off the year, President Claudia Sheinbaum’s administration unveiled ambitious plans for Mexico’s first domestically produced electric vehicle in January.

Named “Olinia” — meaning “moving” in Náhuatl — the project aims to create affordable, compact EVs priced between $4,400 and $7,400. With production planned for Sonora state and three models in development, including a delivery vehicle, the initiative represents Mexico’s push toward sustainable transportation and technological independence. The vehicles are designed for urban families and younger drivers, offering a safer alternative to motorcycles while supporting the country’s energy transition goals.

Mexico’s electric vehicle Olinia to debut at 2026 World Cup

Keep your eyes peeled for more news about Mexico’s home-grown electric car as the World Cup approaches: The tournament will start on June 11 in Mexico City.

2. Puerto Vallarta implements new tourist fee for foreign visitors

Jalisco’s Congress in February approved a controversial fee targeting foreign tourists visiting Puerto Vallarta, sparking debate about its legality and impact. The fee, designed to fund infrastructure improvements including street repairs and public space rehabilitation, could generate between $14-24 million annually. Critics questioned its constitutionality, with some arguing it violates federal restrictions on transit taxes. The measure exempted residents, children under 14, people with disabilities, and tourism workers, but its implementation raised questions about enforcement and potential effects on the region’s vital tourism industry.

The fee was eventually declared unconstitutional by Mexico’s new Supreme Court. The city plans to roll out a modified version of the fee in 2026 that it says complies with court guidance.

3. Why you should try spicy salsa: A cultural deep dive

This feature explored the cultural and historical significance of Mexico’s beloved chile peppers and spicy salsas. From the ancient Mexica goddess of chile, Tlatlauhqui Cihuatl Ichilzintli, to modern-day taquería etiquette, the article examined why “enchilarse” is a quintessentially Mexican experience. The story dives into the science of spicy and the history of chile in Mexico, with a few recommendations thrown in for authentic spots to try hot salsas in Mexico City and Coyoacán.

Salsas at a Mexico City taqueria
Any taquería worth its salt will have at least a couple of salsas to choose from. Salsa verde and salsa roja are the go-tos, but you may also see salsa macha, salsa tatemada, avocado salsa and many other delicious concoctions gracing your table. (Wikimedia CC BY-SA 4.0)

4. Why you can’t climb Teotihuacán’s pyramids anymore

The 2020 decision by Mexico’s National Institute of Anthropology and History (INAH) to prohibit climbing the ancient pyramids at Teotihuacán sparked nostalgia and debate. The article traced the site’s rich history — from its mysterious construction around 200 BCE to its designation as a UNESCO World Heritage Site — while explaining the preservation and visitor safety concerns that prompted the restriction.

With daily visitor numbers once reaching 15,000, the wear on these reconstructed structures became unsustainable. Violators now face fines ranging from $25 to $4,900, with jail time possible for irreparable damage.

There are only a few exceptions to the rule. One, the Nohoch Mul pyramid, reopened to the public in early December.

5. Eastern monarch butterfly population nearly doubles in Mexico

The Mexican scientists ‘moving mountains’ to help migrating monarch butterflies

Conservation efforts showed promising results in March as the area occupied by eastern monarch butterfly colonies in Mexican forests increased from 0.90 to 1.79 hectares during the 2024-2025 winter season.

The World Wildlife Fund and Mexico’s Natural Protected Areas Commission conducted the survey, identifying eight colonies across Michoacán and México state. While the doubling represents significant progress, scientists emphasized that populations remain far below long-term averages, and continued conservation work — including addressing climate change impacts on forest ecosystems — remains critical for the species’ survival.

6. San Miguel de Allende named ‘Best City in the World’ again

For the second consecutive year, Travel + Leisure magazine’s readers voted San Miguel de Allende as the Best City in the World. The Guanajuato destination earned praise for its colonial architecture, cultural richness, walkability, gastronomy and the warmth of its residents. The honor adds to an impressive collection of accolades, including previous recognition from Condé Nast Traveler. Mexico City ranked seventh in the same survey, while Mérida, Yucatán, secured the 25th spot, highlighting Mexico’s strong showing in global travel rankings.

San Miguel continued to win accolades in 2025 for its beauty, cultural richness and sense of community. (Unsplash / Daniels Joffe)

7. Scientists heard more vaquita porpoise calls this year — a sign of hope for the world’s most endangered marine mammal

Acoustic monitoring in the Gulf of California detected 41 encounters with the critically endangered vaquita porpoise, offering hope that conservation efforts may be working. While these acoustic “pings” don’t confirm 41 individual animals — the same porpoise may trigger multiple encounters — the high number suggests the population may be larger than the six to eight specimens recorded in the 2024 census.

The best part of the story? One of the calls was from a baby, meaning the porpoises are still breeding despite their tiny population size.

The monitoring program helps scientists identify natural refuge areas and prepare for future observation missions, though experts emphasize the need for continued vigilance against illegal fishing.

Vaquita in the Gulf of California sent 41 location signals to scientists, ‘a sign of hope’

 

8. Baja California Sur becomes first state to legalize swimming with orcas

Baja California Sur pioneered new regulations for the increasingly popular activity of swimming with orcas, specifically targeting the community of La Ventana, where most tour operators work. The groundbreaking decree establishes permit requirements, limits the number of boats that can approach orcas, and mandates that captains respect the animals’ behavior and retreat if they show distress. Permit revenues will fund training programs and enforcement patrols.

While some local operators expressed concerns about implementation, scientists involved in developing the regulations called it an important step toward sustainable wildlife tourism.

9. Mexico’s first domestically-made airplane in 70 years takes flight

The Halcón 2.1 received federal certification, marking the first aircraft 100% designed and manufactured in Mexico under international standards since 1957. Developed over 11 years by Celaya-based Horizontec, the two-seater light-sport aircraft celebrated its certification with Economy Minister Marcelo Ebrard aboard for an exhibition flight in September.

Built from carbon fiber with a 141-horsepower engine, the plane can reach 18,000 feet and has a range of 1,100 kilometers. Priced at around $200,000 with significantly lower operating costs than comparable models, Horizontec already has 18 orders and eyes export opportunities.

three men in front of the Halcón aircraft
Economy Minister Marcelo Ebrard (center), an early passenger on the Halcón 2.1, said its certification is a major step toward reviving Mexico’s long-dormant airplane construction industry. (Economy Ministry)

10. Sargassum galore: Mexico declares the seaweed a national resource

In a bold move to address the persistent seaweed problem plaguing Mexican Caribbean beaches, Mexico’s Agriculture Ministry officially declared sargassum a national fishing resource. The designation allows equipped vessels to harvest up to 945,000 tonnes of the invasive seaweed annually before it reaches shore and decomposes. What was once merely a tourism nuisance is now being transformed into an economic opportunity, with sargassum showing potential for use in animal feed supplements, fertilizers, biofuels, bioplastics, textiles, and even construction materials.

The change comes as tourism in places like Tulum has dropped steeply, in part due to sargassum accumulation. To address the problem, the Navy collected over 266,000 tonnes between 2019 and 2025, and the state of Quintana Roo is pioneering efforts to convert the seaweed into clean energy.


Thank you for being part of the Mexico News Daily community throughout 2025. Here’s to another year of compelling stories from across Mexico in 2026!

Mission days in old Los Cabos: the Jesuit Era

6
Mission at San Jose del Cabo, 1769
Painting of the mission at San José del Cabo by Alexandre Jean Noël in 1769, a year after the Jesuits had been expelled from the Baja California peninsula. (Public Domain)

Before Juan María de Salvatierra of the Society of Jesus first landed in Loreto, in what is now Baja California Sur, in October 1697 with a small group of nine soldiers and workers, no successful attempt had yet been made by the Spanish colonizers of Mexico to establish a permanent settlement on the peninsula. Hernán Cortés had tried at La Paz in 1535, and so had Sebastián Vizcaíno in 1596, and both failed in under a year. 

Baja California, or California as it was known then, centuries before the settlement of what is now the U.S. state, was a barren and remote land. Cortés saw 23 of his men die of starvation during his months in La Paz. Supplies had continually to be replenished from the mainland, and the Indigenous inhabitants of the peninsula — the Cochimí north of Loreto, the Guaycura from Loreto to Todos Santos, and the Pericú in what is now Los Cabos (as well as some offshore islands near La Paz) — were not always friendly to strangers.

Loreto mission
Misión de Nuestra Señora de Loreto Conchó in Loreto, founded by Jesuit missionary Juan María de Salvatierra in 1697 and the beachhead for 70 years of Jesuit mission building on the Baja California peninsula. (Public Domain)

Indeed, the Indigenous people were seen by the Europeans as brute savages. “In this most remote corner of the world,” noted Jesuit historian Miguel Venegas in the 18th century, “missionaries labored who were thoroughly devoted to the glory of the Divine Majesty, and whose virtue could not be tarnished even in the midst of such a rude people as the Californians.”

The Jesuit challenge

But unlike Cortés and Vizcaíno, who were motivated by greed for pearls, the Jesuits sought only to save souls. And unlike the pearlers who continued to make trips across the Gulf of California seeking riches and who treated the Indigenous as cheap labor, and were thus despised, the Jesuits first learned the Indigenous languages so they could explain the concept of Christ to the land’s native inhabitants in words they understood. 

But the supply difficulties were a constant threat, as were the Indigenous peoples, who tried on several occasions to kill the early padres. Worse yet, Salvatierra and Eusebio Kino, who had been obsessed with California since participating in Admiral Isidro de Atondo y Antillón’s attempt to establish a settlement at San Bruno from 1683 to 1685 — the longest attempt yet — received permission to try again only after agreeing to fund the early missions themselves. 

Kino, however, was unable to get permission to leave his post in the Pimería Alta when the time came, so Salvatierra, along with fellow Italian friar Francisco María Piccolo and Honduran Juan de Ugarte, would spearhead the founding of the first Jesuit missions, with Loreto, the first mission and the first capital of California, becoming the beachhead for 70 years of evangelical proselytizing on the peninsula.

The Pious Fund and the Marqués de Villapuente

From the constant need for financial support, the Pious Fund was born, with the Jesuits mining wealthy donors to pay for their missions, as well as the food to sustain them and the soldiers to protect them. In later years, royal support was sometimes received. But since the Jesuits had sole authority in California, they were viewed with suspicion by authorities in mainland Mexico and much of the money earmarked for them by royal directive was never delivered. 

Ugarte was charged with overseeing the Pious Fund during the critical period of 1697-1700, before coming to California himself in 1701. But the Pious Fund continued and had no better friend than José de la Puente y Peña, better known by his title as the Marqués de Villapuente. Of the four missions built by the Jesuits in the southernmost part of the peninsula — at La Paz (1720), Santiago (1724), San José del Cabo (1730) and Todos Santos (1733) — Villapuente funded three of them, and his sister-in-law, Doña Rosa de la Peña, funded the other, in Todos Santos. 

Juan María de Salvatierra
Portrait of a young Juan María de Salvatierra, “Apostle of California,” by an anonymous artist. This reproduction was made in 1977 by Guadalajaran painter Francisco Godínez. (Archivo Histórico Pablo L. Martínez)

The math was simple. A mission could be endowed with 10,000 pesos. Villapuente, who had come to Mexico from Spain at the age of 15 and had become wealthy through the acquisition of massive landed estates and by making a good marriage to his cousin Doña Gertrudis de la Peña, would liberally endow eight of the 17 missions established on the Baja California peninsula during the Jesuit Era (1697-1768). The last, at Santa Gertrudis, was named for his wife and was established after his death in 1739 from a bequest left in his will.

The mission at San José del Cabo was named for him, although ostensibly for St. Joseph, around whose feast day the city’s fiestas tradicionales are now annually scheduled. According to the esteemed Los Cabos-born historian Pablo L. Martínez, for whom the state’s historical archive is now named, “The name of San José was given after José de la Puente, benefactor of colonization; and that of del Cabo was added to distinguish it from Comondú, which was also San José.”

The founding of a mission and the birth of San José del Cabo

The two Jesuit missions built within what is now Los Cabos were Santiago el Apóstol Aiñiní, founded in 1724 by Sicilian friar Ignacio María Nápoli, and San José del Cabo Añuití, founded six years later by Nicolás Tamaral, originally from Sevilla, Spain. 

These missions were not exactly prepossessing. As Franciscan friar Zephyrin Engelhardt wrote of the mission at San José del Cabo in his 1908 historical work, “The Missions and Missionaries of California: Vol. 1, Lower California”: “On a convenient site near a lagoon, two huts were constructed of palm leaves and roofed with reeds and dry grass; one was to serve as a chapel, the other as a dwelling for the missionary. This was the beginning of San José del Cabo.” 

Both missions would ultimately be relocated, but these were the first structures of note ever built in Los Cabos, and the mission at San José del Cabo was a particular achievement, since Spanish interests had been pushing for support for the Manila-Acapulco Galleon Trade in Southern Baja for well over a century. True, the Jesuit fathers were unlikely to help the galleons fight off the pirates who lay in wait in Cabo San Lucas Bay. But they could help provide fresh water and restorative fare to sailors suffering from scurvy or beri-beri after a long sea voyage. 

Indeed, that’s exactly what happened in 1734, when Tamaral and his neophytes helped nurse the crew of the annual galleon back to health by providing much-needed supplies. From this point on, San José del Cabo was not just a sometimes pit stop for galleon captains en route to Acapulco, but a mandatory one. 

The Indigenous inhabitants of Los Cabos

San José del Cabo, circa 1760s
Mission San José del Cabo as it looked to Jesuit missionary and artist Ignacio Tirsch in the 1760s. (Public Domain)

The Indigenous people at Santiago were called the Coras, and for hundreds of years, they were thought to be related to the Guaycura. However, recent scholarship has shown they were simply another tribe of Pericú, as the people who roamed over Los Cabos for 10,000 years or more were known. 

The Jesuit friars followed the usual procedure with the Pericú, attempting to learn their language to hasten the explanation of Christian concepts and eventual baptism. Pericúes in attendance would spend their days being read to aloud from the catechism by the missionary, with occasional interludes during which they would be fed pozole. However, from the beginning, the Pericú proved the most recalcitrant and difficult of all the Indigenous tribes with whom the Jesuits had attempted to convert. 

“We proceed very slowly with these poor savages because of their remarkable dullness to learn and to make themselves capable of grasping the sublime mysteries of our holy faith,” Tamaral shared in a letter to the Marqués de Villapuente in 1731. “This is owing to the awful vices in which, as pagan savages, they are steeped, to the superstitions to which they are attached, to the wars and to murders prevailing among them, but especially to the mire of impurity into which they are plunged. It is extremely difficult to persuade them to resolve to dismiss the great number of wives that each one has, for even the poorest and lowest have two or three and more wives, because among these Indians the feminine sex is more numerous.”

The Rebellion of the Pericúes

The rebellion, which would rock Jesuit California and last for nearly three years, was thus in some ways inevitable. The Pericú were steeped in polygamy, and the Jesuits were morally set against it. The instigators of the killings that would follow, however, were said not to have been full-blooded Pericú, but those of mixed parentage, likely due to encounters with pearlers or visiting pirates. The most notable firebrands were Botón in Santiago and Chicorí in San José del Cabo.

The Pericúes had threatened to kill the missionaries on several prior occasions (in 1723, 1725 and 1729), but the Jesuits had been reinforced by soldiers with guns, which the Indigenous inhabitants feared. However, by 1734, they were ready for another attempt. The difference was that there were only two sentries at Santiago and none at San José del Cabo. The protectors were gone, looking for cattle, when insurrectionists under Botón killed Cholula-born missionary Lorenzo Carranco, who had replaced Nápoli at Santiago, on Oct. 1, 1734. First, they shot him with arrows, then beat him with sticks and stones, before burning him along with his Indigenous altar boy and the rest of the mission.

Tamaral was next. He, too, was killed, shot with arrows before being beheaded with knives and having the mission he had built burned down around him.  After these initial successes, the Indigenous uprisers next went to the missions at Todos Santos and La Paz. However, the missionaries there — Sigismundo Taraval and William Gordon, respectively — were already gone, so the Pericú and Guaycura — traditionally bitter enemies, but in this case with a common cause — had to be content with burning down the missions.

Death of Lorenzo Carranco
Illustration of the killing of Jesuit friar Lorenzo Carranco at the mission at Santiago in 1734. (Public Domain)

The Pericú, with the help of the Guaycura, had destroyed all evidence of Jesuit mission building in the southernmost part of the Baja California peninsula and had thus regained their independence. The Jesuits, meanwhile, recalled all of their friars to Loreto in fear that the rebellion would be taken up by other Indigenous peoples throughout the peninsula. Fortunately for them, the Cochimí remained peaceful.

The Jesuits also pleaded for help from the mainland, but Viceroy Juan Antonio de Vizarrón y Eguiarreta was a political enemy. Thus, it was 18 more months before Sinaloan governor Manuel Bernal de Huidobro finally arrived to put down the rebellion. The only reason he came at all was an affront that could not be ignored: an attack on the Manila galleon

Eight Spaniards who had come ashore from the galleon in 1735 were killed and a force of 600 Pericúes under a leader named Gerónimo attempted to take the ship itself. But in this, they were repelled, although five more sailors were killed during subsequent fighting. This insult resulted in the establishment by Huidobro of a presidio in San José del Cabo — only the second on the peninsula, with the first at Loreto — although its use lasted less than two decades. The mission itself was reduced to visita status by 1748, a status which it retained until the Jesuits were expelled from California in 1768, and from all Spanish lands over a period of several years.

The end of the Jesuit Era

The Rebellion of the Pericúes was, in many ways, a presentiment of the expulsion of the Jesuits from the peninsula three decades later, in 1768. To put down the rebellion, the practical foundations of Jesuit governance had been compromised. Their hands forced by circumstance, they ceded some of their almost total control over the peninsula and its people to outsiders. They also opened themselves up to criticism from their political enemies, of which they had many, not just for their inability to protect themselves or strategic interests, but because they failed to protect their Indigenous charges. 

The Jesuits, despite their good intentions, had brought ruin to the peninsula’s Indigenous people. Before they arrived, there were an estimated 50,000 Indigenous peoples on the Baja California peninsula. By 1750, that number had withered to only 12,000. The Pericú were particularly devastated, not just by the casualties they suffered in the rebellion, but by disease. Smallpox and measles took a toll, but their population — 5,000 at its height — was also ravaged by the so-called “French Disease,” a virulent form of syphilis that was brought to the peninsula via the Manila-Acapulco Galleon Trade. By 1768, the year the Jesuits were forced to leave, the number of Pericúes was so low that they were bordering on extinction. 

Unfortunately for them, they would fare no better under the Franciscans, the missionary order that succeeded the Jesuits in California.

Chris Sands is the former Cabo San Lucas local expert for the USA Today travel website 10 Best and writer of Fodor’s Los Cabos travel guidebook. He’s also a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily.

Seasonal shadows amidst holiday cheer in Puerto Vallarta

9
Puerto Vallarta
Puerto Vallarta is a great place to take a vacation, but it can't always cure the holiday blues. (Unsplash/Nicole Herrero)

I live in Puerto Vallarta, a place many imagine as the cure-all for everything that hurts. Winter here doesn’t arrive with sleet or darkness; it arrives in a burst of vivid colour. 

December sunlight spills across the bay, and poinsettias stack in brilliant towers at every market stall. Palm trees shimmer with strings of Christmas lights. ‘Tis the season when people from colder countries flood in, chasing warmth they can’t find at home.

Holiday blues travel, even to Puerto Vallarta

Puerto Vallarta
Sunsets are spectacular in Puerto Vallarta, any time of year. (Unsplash/Manuel Marín)

But this warmth isn’t just the kind that heats your skin. It’s the holiday spirit. It’s the laughter spilling from crowded plazas, children singing carols and fireworks painting the night sky. Yet amidst this vibrant celebration, a different warmth entirely seeps into your bones. It reminds you of what you might be missing, making the heaviness you carry feel even heavier.

If you suffer from depression, it doesn’t stay behind; it travels with you. I know this because I live with it, and I admit it openly, even when societal expectations suggest I shouldn’t. It’s crossed borders with me more times than I can count.

People assume that moving to Mexico means sadness evaporates. Friends back home have asked, “What do you have to be depressed about there?” as if palm trees and sunshine can shield me from my own mind.

But depression doesn’t check your environment before settling in. It doesn’t care that others think you should be happier than you are. When I moved here, I hoped the sun would soften my depression, and sometimes it does, but more often, it simply adapts. You can relocate your body, but your mind always comes with you.

Beauty isn’t always a balm

Sharing my struggles can sometimes be met with disbelief, as if the beauty surrounding me should act as a balm for my sorrow.

At times, the beauty feels almost mocking. The world around me is too bright for the heaviness I carry. I’ve watched sunsets that should evoke something deep within me, yet I felt numb, walking the waterfront in search of relief, only to return home with the same weight tightening my chest.

Tourists swim and lounge on the beach in front of Puerto Vallarta hotels and condos
Even on a beautiful beach or with palm trees swaying, one can still have a tough day. (Elmira Danilova / Pexels)

The hardest part is explaining this to friends who believe I won some emotional lottery by living by the ocean. Sometimes, it’s easier to say, “I’m good,” than to delve into why I still struggle, even with palm trees swaying outside my window.

My depression sharpens around the holidays. The joy of the Christmas season bursts forth in a cascade of lights, music and laughter. There are posadas, parades and so many displays of life. Yet none of that cancels out the ache of distance for those of us who grew up with cold-weather Decembers and shared rituals.

Missing winter weather

When winter is stripped away, the emotional rhythm your body remembers feels lost. The familiarity of snowy rooftops and the scent of pine is replaced by palm trees draped in lights and sun-soaked mornings. While Santa in board shorts is adorable, I sometimes miss the magic of snow falling quietly outside my window.

According to an American Psychological Association study, a significant percentage of people with depression see symptoms increase during the holiday season, even without traditional winter darkness. For expats, the feeling of holiday loneliness can also increase. The sun doesn’t eliminate these feelings; it sharpens them against the vivid backdrop of celebration.

Beyond individual struggles, this winter feels more emotionally strained. Fewer people are travelling or making big moves, and it isn’t just because of flight prices or global events; we’re all carrying more than usual. 

Mexico doesn’t cure depression, but it does alter one’s experience of it

Mexico’s upcoming 2026 residency requirement changes add another layer of stress altogether, with higher financial thresholds and stricter processes. The anxiety surrounding depression doesn’t motivate action; it freezes it.

"A young boy skimboarding on a wave during a golden sunset, illustrating the active coastal lifestyle featured in Puerto Vallarta community news December 2025."
Living in Mexico may not cure depression, but its extraordinary natural beauty and abundant outdoor activities may alter your relationship with it. (Agencia Perspectiva/Cuartoscuro)

Living in Mexico hasn’t cured my depression, but it has altered my relationship with it. The pace is slower, the light lingers longer and there’s something grounding about buying fruit from the same vendor every morning or watching fishermen pull in their nets at sunrise. 

Small rituals have become my lifeline. A slow walk to the market before the heat settles in, a drive to a nearby town where life feels simpler, and days spent listening to waves instead of my swirling thoughts. These rituals may not heal me, but they hold me and sometimes that’s enough.

When I tell the truth about how I feel, when I allow myself to say, “I’m not okay today,” I find relief in vulnerability. It isn’t weakness; it’s a way to lighten the load I carry.

How light returns

If you’ve ever spent a winter in a landscape that seems like paradise but you still felt hollow, you’re not alone. If you stayed home this winter because planning a trip felt overwhelming, you haven’t failed. If the idea of moving abroad suddenly feels too heavy, you’re not weak. If the holidays make your chest tighten, you’re not broken. You’re just balancing memory, expectation and rhythm all at once, and that weight deserves acknowledgement, not judgment.

Depression doesn’t ask for permission, and it doesn’t disappear at the turn of a calendar just because your surroundings improve. Seasonal or not, it craves gentleness, a slower rhythm, softer mornings and permission to simply exist without the pressure to be happy all the time.

And healing doesn’t require something grand or dramatic. It can be as simple as a morning when the fog lifts just a little, an afternoon when a laugh bubbles up without effort, or an evening when you feel a flicker of hope again. That’s how light returns: gradually, unexpectedly and softly.

Personal experience and Puerto Vallarta

A woman in a white t-shirt stands next to a black touring motorcycle
‘This winter, wherever you find yourself, give yourself permission to recognize your struggles without shame.’ (Charlotte Smith)

I’m not a doctor. I can’t prescribe solutions. But I can share my experiences. 

I live with depression, and I speak it aloud. It’s okay to feel heavy in a place that seems perfect.

This winter, wherever you find yourself, give yourself permission to recognize your struggles without shame. Allow the light around you to coexist with the darkness within. Slow your mornings, immerse yourself in the sounds of the waves or the whispers of the wind, and let pauses be enough.

I don’t have all the answers. I only know that living with depression, especially in a beautiful place like Puerto Vallarta, has taught me that it’s possible to keep showing up for yourself, even when it feels impossible. That’s my offering: my own experience and the quiet reminder that you don’t have to carry this alone.

Hold your struggles close, and know that gentleness is a gift you can give yourself, especially amidst a vibrant holiday season.

Charlotte Smith is a writer and journalist based in Mexico. Her work focuses on travel, politics, and community. You can follow along with her travel stories at www.salsaandserendipity.com.

Mexico’s year in review: The 10 biggest business and economics stories of 2025

3
President Sheinbaum and Economy Minister Marcelo Ebrard.
President Sheinbaum and Economy Minister Marcelo Ebrard. (Moises Pablo/Cuartoscuro)

It was a year of mixed fortunes for the Mexican economy. Economic growth significantly slowed, but foreign direct investment hit a record high. Incoming remittances declined for the first time in over a decade, but export revenue continued to grow.

Meanwhile, the Mexican peso appreciated significantly, a development that has both upsides and downsides for Mexico.

On the business front, three Mexican financial institutions shut down after the U.S. government accused them of laundering money for cartels, while the state of Querétaro solidified its position as Mexico’s data center hub.

As 2025 draws to a close, here’s a look back at 10 of the biggest business and economics stories in Mexico this year. Many of the developments, events and issues outlined below had a significant impact on the economic situation in Mexico this year and, in some cases, will help shape the future the country will face in the years to come.

The Mexican peso gains strength

According to the Bank of Mexico, the USD:MXN exchange rate at the close of trading on Dec. 31, 2024, was 20.88

On Dec. 30, 2025, the USD:MXN closing rate was 17.99. Thus, the peso appreciated just over 16% against the greenback in the first 11 months and 30 days of 2025.

The USD:MXN exchange rate briefly went above 21 in April, the peso becoming collateral damage in an escalating trade war between the United States and China.

But all in all, the peso had a very positive year in 2025, performing far better than many people expected.

The currency’s appreciation was due to a range of factors, including the weakness of the US dollar, the Bank of Mexico’s still-high benchmark interest rate (even though it declined by 300 basis points in 2025) and strong foreign investment inflows.

Why does it matter?

A strong peso has a range of impacts on individuals, companies and government. Let’s take a look at a few examples.

Mexican families that depend on remittances from the United States receive less money in pesos when Mexico’s currency is stronger, reducing their purchasing power.

Similarly, Mexico-based U.S. citizens who rely on income and/or savings in the U.S. to fund their living expenses get less bang for their buck when the peso is stronger, effectively making Mexico a more expensive place for them to live.

A person shopping at a Chinese market
In theory, a strong peso should make many imported consumer items — especially those from the U.S. — more affordable for Mexicans. (Mario Jasso/Cuartoscuro)

In theory, a strong peso should make many imported consumer items — especially those from the U.S. — more affordable for Mexicans, although that depends on importers and retailers passing on the lower costs.

For foreign companies operating in Mexico, a strong peso will increase their in-country costs, including labor costs, when converted to dollars. A strong peso can be a deterrent to foreign investment as it increases the overall costs of doing business in the country.

For the Mexican government, a strong peso increases the capacity to service dollar-denominated debt. According to President Claudia Sheinbaum, the strong peso is a sign that the Mexican economy is doing well, even though growth slowed significantly in 2025.

The government launches Plan México 

The unveiling of the Plan México economic initiative in January was a major milestone in the first year of Sheinbaum’s presidency.

Among the goals of the ambitious industrial policy are to make Mexico the 10th largest economy in the world by 2030, reduce reliance on imports from China and other Asian countries, increase domestic production of a range of goods, attract higher levels of private investment and create 1.5 million new jobs.

Mexico's President Claudia Sheinbaum stands at the presidential podium looking out at an audience off-camera with her fist raised and her mouth open as if cheering. Behind her is a wall with the words in Spanish: Plan Mexico, Strenghtening the Economy and Well-Being, Mexico City April 3, 2025.
With a decidedly optimistic atmosphere at Mexico’s National Anthropology Museum in Mexico City, President Claudia Sheinbaum invited governors, business leaders and the press to an event in early April to announce expansions to her already ambitious Plan México. (Graciela López/Cuartoscuro)

The plan was strengthened in April with the announcement of 18 related “programs and actions,” including commitments to accelerate the construction of public infrastructure projects and homes, and to increase domestic production of a range of goods including vehicles, pharmaceuticals, medical devices and petrochemicals.

Why does it matter?

Plan México is all about setting Mexico up for the future.

If Mexican industry weren’t protected, even by imposing higher tariffs on imports from China (see below), a huge number of Mexican jobs could (or would) be lost and more “Hecho in México” products would disappear from shelves.

If the Mexican government were not proactive in seeking foreign investment, GDP growth rates in the coming years would likely suffer.

FDI hits a new high 

In the first nine months of the year, Mexico received a record high US $40.9 billion in foreign direct investment (FDI), an increase of 14.5% compared to the same period of 2024.

The amount exceeds total FDI in the entirety of 2024, which was around $37 billion.

A major positive in the FDI data for the first nine months of 2025 is that the new investment component — as opposed to the reinvestment of profits by companies with an existing presence in Mexico — more than tripled compared to the same period of 2024.

New investment accounted for 16% of total FDI between January and September, up from just 6% in the same period of 2024.

Why does it matter?

A record-high FDI total shows that Mexico is benefiting from the nearshoring trend, despite claims that it had missed the boat. The increase in new investment is particularly encouraging in this respect.

The increase in FDI is also positive because it demonstrates that foreign companies are willing to invest in Mexico at a time when the country’s preferential trading conditions with the United States via the USMCA free trade pact are diminished as a result of Donald Trump’s imposition of tariffs on a range of Mexican products.

The conclusion of the 2026 review of the USMCA will provide greater certainty for investors, and should therefore spur an additional influx of FDI, provided that Mexico can meet foreign companies’ needs, including a reliable electricity supply (bonus points if it is from a renewable source), robust logistics infrastructure, a stable rule of law and security.

The increase in FDI in 2025 allows the federal government to say that Mexico is doing a pretty good job in meeting investors’ needs and that Plan México is already bearing fruit.

US accuses Mexican banks of laundering money for cartels 

The news came as a bombshell in late June: The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury accused the Mexican banks CIBanco and Intercam, and the Mexican brokerage firm Vector, of laundering millions of dollars for drug cartels involved in the trafficking of fentanyl and other narcotics to the U.S.

The Mexican government repeatedly pointed out that FinCEN didn’t provide any hard evidence to support its allegations, but the accusations nevertheless turned out to be a fatal blow for the three financial organizations.

CIBanco, Intercam and Vector all ceased to operate in Mexico, not before causing their customers a significant amount of grief.

3 Mexican financial institutions cease operations after US money laundering claims

Why does it matter?

This whole episode is a testament to the long — and muscular — arm of Uncle Sam, and his willingness to use it against those he sees, or believes, are doing harm to U.S. citizens.

In this case, the target was financial institutions accused of being part of a malicious network that poisons Americans with illicit fentanyl.

Ultimately, the U.S. government was effectively able to kill off CIBanco, Intercam and Vector with accusations that weren’t supported by any hard, publicly accessible, evidence.

This is clearly concerning, not least for other Mexican banks.

Querétaro’s data center boom continues 

The Bajío region state of Querétaro has, in a relatively short period of time, become Mexico’s data center hub. It is an attractive destination for data center investment for a range of reasons, among which are its central location in Mexico, its proximity to Mexico City and its infrastructure, including high-speed data cables.

After various developments in this space in 2024, including the opening of a Microsoft data center region, the momentum continued in 2025, with President Claudia Sheinbaum confirming a $5 billion “digital region” investment by Amazon Web services, the company ODATA beginning operations at a $3 billion data center campus, and the U.S. tech firm CloudHQ announcing that it will build six data centers and complementary infrastructure on a single site in Querétaro.

Querétaro is thus poised to receive significant investment in the coming years as it leads the country in providing the physical infrastructure for companies at the forefront of the digital revolution, an ongoing transformation that now has the development of artificial intelligence at its center.

Why does it matter?

The data center investment in Querétaro will help Mexico play a pivotal role in the digital revolution in the second quarter of the 21st century.

The investment will create jobs, spur the economy, contribute to even greater economic integration between Mexico and the United States and strengthen the country’s competitiveness in technologies such as cloud computing and artificial intelligence.

The onus is on federal, state and municipal authorities to manage the data center boom in Querétaro effectively and ensure that it doesn’t create major problems, including environmental and water supply ones.

New tariffs target China 

In September, President Sheinbaum sent an initiative to Congress that aimed to impose new tariffs on imports from countries with which Mexico doesn’t have a free trade agreement.

President Sheinbaum gestures from the podium of her morning press conference
President Sheinbaum has emphasized that the new tariffs are directed at “the countries with which we don’t have trade agreements,” not China specifically. (Galo Cañas/Cuartoscuro)

The main target of the proposed new tariffs was — and is — clear: China, even though Sheinbaum herself asserts that the duties are not specifically directed at the East Asian economic powerhouse.

The tariffs were approved by Congress this month, albeit after many of the duties proposed by the president were lowered by lawmakers.

Still, Mexico’s protectionism against the world’s second-largest economy and various other countries, including South Korea, India and Thailand will increase to an unprecedented level in January.

China, for one, is not happy, urging Mexico to “correct its wrong practices of unilateralism and protectionism” as soon as possible.

Why does it matter?

Mexico’s willingness to impose additional tariffs on Chinese goods is seen in a positive light by the United States and could thus help it in next year’s USMCA review.

Higher tariffs against cheap Chinese imports will also help to protect Mexican industry, while the Mexican government is projected to collect tens of billions of pesos in additional revenue on an annual basis. It remains to be seen whether the impact on inflation will be more than the projected 0.2 percentage points.

The plan to increase the tariff on cars imported from China to 50% from 20% could lead to a reduction in the sale of such vehicles in Mexico, where BYDs, MGs and Chireys are commonly seen on the streets.

However, Chinese manufacturers are known for their ability to reduce their costs and the purchase price of their products in order to offset the impact of tariffs. Thus, it remains uncertain whether strong sales of Chinese cars in Mexico will come to an end .

Central bank continues to cut interest rates 

The Bank of Mexico (Banxico) lowered its benchmark interest rate after every one of its board’s eight monetary police meetings in 2025.

Banxico’s key rate thus declined from 10% at the start of the year to 7% after the Dec. 18 monetary policy meeting.

More cuts could come in the first half of 2026, provided inflation trends down, as the central bank forecasts it will.

Banxico building
Banxico’s key rate declined from 10% at the start of the year to 7% after the Dec. 18 monetary policy meeting. (Graciela López/Cuartoscuro)

Why does it matter?

Lower interest rates should help to spur the Mexican economy in 2026 by increasing domestic demand from consumers.

The reduction in interest rates and consequent cheaper access to credit could also help some businesses to invest in themselves and expand, both in a physical sense and in terms of their workforces.

Lower interest rates could also contribute to a weaker Mexican peso in 2026, although the currency appreciated significantly this year despite the 300-basis-point reduction in Banxico’s benchmark rate.

Mexico became the biggest buyer of US goods, as exports continue to grow  

As we reported last month, in 2025 Mexico was the largest buyer of U.S. goods in the first eight months of the year, outpacing Canada. It remained in that position at the end of September, according to U.S. data published on Dec. 11.

Mexico’s ascension to the No. 1 position among purchasers of U.S. goods is a significant milestone in the bilateral trade relationship.

Mexico is also the largest exporter of goods to the United States, having dethroned China in 2023.

Mexico’s outlay on imports from the U.S. in the first nine months of 2025 was $253.6 billion, just ahead of Canada’s expenditure of $253.47 billion.

Why does it matter?

Mexico’s rise to the position of the world’s top buyer of U.S. exports further underscores the trade dependency of the two North American neighbors.

A shop sign urges Canadian to buy national rather than imported products
A successful “Buy Canadian” campaign has reduced U.S. exports to Canada, clearing the way for Mexico to become the top buyer of U.S. goods. (Shutterstock)

Mexico’s expenditure on U.S. goods in the first nine months of the year increased, albeit only slightly, whereas Canada’s outlay on imports from its southern neighbor declined amid a “Buy Canadian” movement that emerged in response to tariffs imposed by U.S. President Donald Trump on a range of Canadian products.

That Mexico can show the United States that it is spending more on U.S. goods should help it in negotiations with the U.S. during the USMCA review.

While the United States could push Mexico to buy even more U.S. goods as it seeks to reduce the trade deficit it has with its southern neighbor — a priority of Trump — the fact that Mexico’s outlay is increasing should be seen in a positive light by U.S. trade negotiators.

The economy slows 

Mexico’s economy grew just 0.4% annually in the first nine months of 2025, a significant slowdown compared to the 1.2% expansion in 2024.

A 1.5% contraction of the secondary sector — which includes manufacturing, construction, mining and electricity generation — was the cause of Mexico’s slowdown this year.

The primary sector (+2.9%) and the tertiary sector (+1.2%) both grew in the first nine months of the year.

In the third quarter of the year, the Mexican economy contracted 0.3% compared to the previous three-month period.

BBVA Research said in a note that “the decrease in GDP during the third quarter of the year occurs in a context of prolonged uncertainty regarding U.S. trade policy, slower growth in real wages, and a deterioration in consumer confidence.”

Why does it matter?

This year’s economic slowdown primarily matters because of the negative effect on the lives of ordinary Mexicans.

While unemployment remains low, at 2.6% in October, the rate has risen from the all-time low of 2.2% in March.

That is one sign that the low growth rate is having an impact on the economy of Mexico and its people.

Another is that the percentage of total workers who are employed in the informal economy has increased, reaching a three-year high of 55.4% in the third quarter.

In addition, consumer confidence fell every month between September and November, according to the national statistics agency INEGI.

The economic slowdown is also concerning, considering that foreign direct investment in Mexico reached a record high in the first nine months of the year. FDI can be a key driver of economic expansion, but in 2025, it wasn’t able to spur anything beyond a lackluster rate of growth.

Let’s hope that the projections for higher growth in 2026 are at least met, if not exceeded.

Remittances decline 

The inflow of remittances to Mexico declined 5.1% annually in the first 10 months of 2025, making it inevitable that the accumulated value of the international transfers will fall this year for the first time in more than a decade.

Between January and October, Mexico received just over $51.3 billion in remittances, down from $54.08 billion in the same period of 2024.

Analysts have partially attributed the decline in remittances to Mexico this year to fear of going out to work among U.S.-based Mexicans, of whom 4.3 million are “unauthorized” immigrants, according to the bank BBVA.

Why does it matter?

An increase in the value of the peso and the decline in the transfer of remittances to Mexico was a double whammy for the millions of Mexican families that depend on the international transfers to make ends meet.

In 2025, many of those families would have received significantly less in pesos from their loved ones abroad, leaving them with less money to spend at a time when inflation remains a concern, if not the runaway scourge it was earlier in the decade.

The reduction in remittances — which contributed to 3.6% of Mexico’s GDP in 2024 — is also a factor, albeit not a major one, in the economic slowdown this year.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

Opinion: Could Mexico make America great again? Zeroing in on the demographics

9
Kamala Harris supporters at a rally in the U.S. A older Latina woman and a young Latina girl are featured in this picture of a crowd behind a red, white and blue barrier. They are cheering and taking photos with their cell phones
The majority of voters in Texas, more than any other group (including white Americans), are Latino. (Kamala Harris/X)

Anyone who has ever taken an economics class knows that the two basic factors of production are labor and capital. So, unless robots suddenly take over the planet, we need to talk about people — and we need to do it seriously. In my previous two texts, I wrote about Trump’s policy guardrails and about China. This time, I’ll focus on what may be the most essential element of the U.S.-Mexico relationship: its people.

Before getting into politics and economics, it’s worth grounding the conversation in a simple demographic fact. Today, more than 20% of the U.S. population is Hispanic, and over 70% of that group is of Mexican origin. This isn’t an abstract statistic — it’s a structural feature of American society, visible across large parts of the country and primarily concentrated in the Southwest.

With that context in mind, the United States is home to the largest Mexican diaspora in the world, but what we often forget is that Mexico is also home to more Americans than any other country outside the U.S. That alone has important political implications. Three U.S. states — New Mexico, California and Texas — are already majority Latino.

Let me repeat that: the majority of voters in those states, more than any other group (including white Americans), are Latino.

And not coincidentally, Texas and California are the two states with the greatest weight in the Electoral College. Several others are following the same path. In the coming years, states like Arizona, Nevada and Florida — among others — are likely to reach a similar tipping point.

Beyond citizenship and identity, there’s also the labor market reality.

Mexico is the number one country in terms of work visas issued by the United States, followed by China. This matters because the U.S. labor market is structurally constrained. A quick look at the Bureau of Labor Statistics — specifically the ratio of unemployed workers to job openings — tells a very clear story: for the past seven years (excluding a brief moment during the pandemic), the U.S. has consistently had more job openings than unemployed people. This isn’t rocket science. If the United States wants to grow, reindustrialize and compete, it needs people.

Here’s where demographics become impossible to ignore. China, the United States and Mexico are entering very different phases — and that divergence matters. China has already passed its population peak and is experiencing a sharp decline in birth rates, which will steadily shrink its working-age population. The United States is aging too: Baby Boomers and Gen Xers are retiring faster than younger generations are entering the labor force, resulting in a net reduction of roughly 450,000 workers per year (take a moment to let that sink in).

Mexico, by contrast, is at a demographic moment similar to China’s about thirty years ago, with a still-growing and relatively young working-age population. This makes Mexico’s labor force a natural complement to the U.S. economy — not as a substitute, but as a strategic extension of North America’s productive capacity. Quick clarification: I’m not necessarily arguing for increased migration flows. Having everybody working within their territory, but with a sense of collaboration and complementarity, works.

With a population that is, on average, eight years younger than that of the United States, and a workforce that has spent the past three decades training in high-end manufacturing, Mexico has a clear opportunity to enable — not replace, not outsource — the reindustrialization of the region. Add to that the deep social, cultural and political ties between our two countries, and the conclusion becomes hard to ignore.

If we choose to see each other as partners in growth, the path forward is clear.

We need bridges, not walls.

Pedro Casas Alatriste is the Executive Vice President and CEO of the American Chamber of Commerce of Mexico (AmCham). Previously, he has been the Director of Research and Public Policy at the US-Mexico Foundation in Washington, D.C. and the Coordinator of International Affairs at the Business Coordinating Council (CCE). He has also served as a consultant to the Inter-American Development Bank. 

Pemex reports disappointing November as export revenues plunge 50%

4
Pemex signs
While Mexicans have been assured that gasoline prices won't rise with the new year, Pemex, the state-owned oil company, is having a hard time meeting its production and export goals. (Moisés Pablo/Cuartoscuro)

Two weeks after a disappointing joint-venture contract auction, state oil company Pemex reported poor November results, with crude oil exports threatening 25-year lows.

Pemex reported production of 1.624 million barrels per day (bpd) in November, a drop of 1.9% compared to the same month last year (1.656 million bpd).

oil rigs
Pemex’s production of 1.6 million barrels per day in November was nearly 2% lower than the same month last year, and below the government’s target production, as it has been all year. (Pemex)

Including private trading partners such as Harbour Energy, average production in November was 1.641 million bpd, down from 1.673 million bpd produced a year ago. This also translates to a 1.9% downturn.

The oil company has yet to meet the federal government’s target of producing an average of 1.8 million bpd. The November figure, excluding trading partners, is 176,000 barrels below the target.

Oil export revenues are also slumping, on track to close the year at levels not seen in the last 25 years, the newspaper El Financiero reported. Company revenues hit US $925.4 million in November, a 50% drop compared to the same month in 2024.

This marks the third time this year oil export revenues failed to reach US $1 billion, the others being June (US $862 million) and August (US $954 million).

Pemex accumulated US $12.337 billion in “external sales” through the first 11 months of the year, a figure roughly comparable with the average income recorded at the beginning of this century.

Between 2000 and 2002, Pemex earned between US $13 and US $14 billion annually from crude oil exports, registering a historical high of US $49.4 billion in 2011, when the price of a barrel of oil exceeded US $101.

The volume of crude oil exports in November was 539,000 bpd, down 43% compared to the 951,000 barrels per day reported in November 2024.

Intelligence and forecasting company Industrial Info Resources reported earlier this month that Pemex’s oil production “has been declining for over two decades,” driven by “the natural decline of mature oil fields and lower investment in upstream operations.”

Average production for the year through November reached 1.616 million bbd, down 7.8% from the first 11 months of 2024 when Pemex averaged 1.754 million bbd.

Pemex had hoped to stabilize oil production at 1.8 million bpd over the next decade and investments have risen since the Finance Ministry announced a new financing plan in August.

Inside Pemex’s plan to reach fiscal solvency by 2027

Earlier this month, however, it failed to attract major companies during a joint-venture contract auction. 

According to an exclusive report by Reuters news agency, Pemex awarded just five of the 11 new contracts it hoped to ink before the end of the year. The so-called “mixed contracts” are the first of their kind in Mexico.

Pemex’s partners in these five contracts are primarily local companies, Reuters said, and Pemex would have stakes of between 40% and 85%.

Reuters said the production added by the ventures is unlikely to reverse Mexico’s declining crude oil output. 

With reports from El Financiero, El Economista and La Jornada

Nearly 5M tourists to visit Mexico during end-of-year season

0
winter tourism in Guanajuato, Mexico
Mexico has seen an average increase of 504,795 tourists during the winter holiday season over the past five years, according to the Tourism Ministry. (@SECTUR_mx/X)

Mexico is expecting nearly 5 million tourists for the 2025-2026 year-end holidays, primarily between Dec. 20 and Jan. 11, according to Tourism Minister Josefina Rodríguez Zamora.  

This increase represents a growth of just over 5% compared to the previous end-of-year season, underscoring the strength of Mexico’s tourism industry.  

“The end-of-year season is key for the sector: it mobilizes millions of people, strengthens the local economy and consolidates tourism as a vital engine of well-being for Mexican families,” Rodríguez said. 

At the national level, the average hotel occupancy rate is expected to reach 56.6%, with some destinations expected to exceed 80%. Cancún, Riviera Maya, Los Cabos and Puerto Vallarta are some of the destinations with the highest occupancy rates and visitor numbers. 

The 4.9 million tourists cap off a year of strong performance for the sector: Between January and October, Mexico welcomed 16 million international arrivals by air, according to official figures.

Rodríguez added that over the past three years, Mexico has seen an average increase of 504,795 tourists during the winter holiday season.

“These percentages represent much more than just numbers,” she said. “They are a clear demonstration of how tourism drives shared prosperity, bringing opportunities to communities, small businesses and workers throughout the country.” 

This sustained growth also aligns with projections from a recent study by Google and the international professional services network Deloitte, which estimates that Mexico is on track to become one of the world’s top five most-visited destinations. According to the study, international arrivals are expected to rise from 45 million in 2019 to 90 million by 2040. 

Looking ahead, tourism is projected to play a pivotal role in Mexico’s economy next year, starting with the 2026 FIFA World Cup, which is expected to bring an additional 5.5 million tourists between May and July. 

In April, Acapulco will also host the 50th Tianguis Turístico (Tourism Fair), the country’s largest platform for promotion and business in the tourism sector, and one of the most significant of its kind in the Americas.

That momentum will continue through November, when Guadalajara, Jalisco, hosts the first edition of ITB Americas — inspired by ITB Berlin — a key event for professionals in the events and conferences industry.

With reports from Punto MX