With the global economy in a state of "turbulence" and the uncertainty of fallout from the U.S. tariffs, the World Bank could only lift its 0% growth forecast for Mexico to 0.2%. (Shutterstock)
The World Bank updated its 2025 economic growth forecast for Mexico on Tuesday, amid growing trade uncertainty that is expected to hit Mexico harder than other Latin American countries.
The World Bank anticipates a GDP growth rate for Mexico of just 0.2% in 2025. That’s slightly up from its April reading of 0%, but down from the 1.5% growth it had predicted for this year in January. The growth forecast for 2026 is 1.1%.
The World Bank cited “volatile food inflation” as Latin America’s major obstacle to managing headline (total) inflation in 2025. (@worldbankdata/on X).
Meanwhile, the growth rate for Latin America as a whole was revised downward from 2.6% to 2.3% in 2025 and to 2.4% in 2026.
“Only six months ago, a ‘soft landing’ appeared to be in sight,” World Bank Senior Vice President and Chief Economist Indermit Gill wrote in the report’s foreword. “That moment has passed. The world economy today is once more running into turbulence.”
Gill explained, “International discord—about trade, in particular—has upended many of the policy certainties that helped shrink extreme poverty and expand prosperity after the end of World War II.”
Increasing trade barriers and greater uncertainty globally are expected to slow economic growth across Latin America, according to the World Bank’s June Global Economic Prospects.
Mexico, the region’s second-largest economy, will be the most directly affected, largely due to the 25% tariffs imposed on imports by the United States for goods that are not compliant with the United States-Mexico-Canada free trade agreement (USMCA). Mexican exports to the U.S. in 2024 accounted for 80% of the country’s total exports, and around half of them were not covered by the UMSCA.
In comparison, U.S. tariffs on imports from other Latin American countries are at 10%.
“Additional trade restrictions under a revised United States-Mexico-Canada Agreement could further reduce Mexico’s exports,” the World Bank warns. Meanwhile, “a sharper-than-expected slowdown in U.S. growth would significantly reduce demand for LAC (Latin America and the Caribbean) countries’ goods and services.”
Latin America must focus on keeping “headline inflation relatively contained despite volatile food inflation,” according to the World Bank.
The global economic growth forecast is also lower than last year, at 2.3% in 2025 compared to 2.8% in 2024.
Meanwhile, China’s economic growth is projected to decrease from 5% in 2024 to 4.5% this year and 4% next year. The strict tariffs on imports from China to the U.S. will likely also hamper Chinese nearshoring activities in Mexico.
The peso is enjoying a sustained streak of gains on the US dollar, but it may reverse course as USMCA discussions begin toward the end of 2025. (María Ruiz)
The Mexican peso appreciated to its strongest position against the US dollar in almost a year on Wednesday, dipping below 19 to the greenback due to a range of factors, including speculation that the United States could soon exempt Mexican steel and aluminum from its 50% tariff.
The peso was even stronger earlier in the day, reaching 18.82 to the dollar.
The last time the peso was stronger was in August last year. The appreciation on Wednesday came after the peso closed at 19.06 to the dollar on Tuesday, according to the Bank of Mexico.
Gabriela Siller, director of economic analysis at Mexican bank Banco Base, said on social media site X that the peso appreciated on Wednesday due to three reasons:
The expectation that the United States Federal Reserve will cut its interest rate while the Bank of Mexico “could pause” its easing cycle.
Speculation that United States President Donald Trump could remove the 50% tariff on steel and aluminum from Mexico.
Citing industry and trade sources, Reuters reported on Tuesday that “the United States and Mexico are negotiating a deal to reduce or eliminate President Donald Trump’s 50% steel tariffs on imports up to a certain volume.”
Bloomberg reported earlier on Tuesday that the two countries were “closing in on a deal” that would remove Trump’s tariffs on Mexican steel “up to a certain volume.”
On Wednesday, the U.S. president announced that the United States’ “deal with China is done, subject to final approval with President Xi and me.”
Trump said that the U.S. is “getting a total of 55% tariffs,” while “China is getting 10%.”
He said that the deal also included the supply of magnets and rare earths from China to the United States, and that Chinese students would have access to U.S. colleges and universities.
“Relationship is excellent,” Trump declared.
Mexican financial group Monex said that the peso got a boost from “the optimism of investors, who anticipate a possible trade agreement [on steel tariffs] between Mexico and the United States.”
“Additionally, Trump’s comments about a trade agreement with China subject to the confirmation of Xi Jinping favor an environment of less aversion to global risk,” it said.
In another X post on Tuesday, Siller said that data showing that annual inflation in the United States was 2.4% in May — slightly lower than expected — increased the probability that the U.S. Federal Reserve would cut the federal funds rate, although she didn’t specify how soon. Most economists polled by Reuters believe that the Fed won’t make a rate cut until September.
At 4.42% in May, inflation in Mexico was considerably higher than the rate in the United States.
The Bank of Mexico’s key interest rate is currently set at 8.50%, while the Fed’s rate is much lower at a 4.25%-4.5% range. The significant gap between the two rates is widely seen as benefiting the Mexican peso.
What’s the outlook for the peso?
Siller said that the peso could appreciate to 18.50 to the US dollar this year “if there isn’t aversion to global risk, if Trump removes tariffs on Mexico and if the Fed cuts its [interest] rate while the Bank of Mexico pauses its cycle of interest rate cuts.”
For its part, the bank Banamex said on Tuesday that it estimates a USD:MXN exchange rate of 20.6 in December, which would represent a depreciation of more than 8% for the peso compared to its current position.
Banamex predicted that “noise that could arise” from the start of the USMCA review — which is scheduled for 2026 but could commence this year — will cause the peso to depreciate later in 2025.
Mexico City's competitiveness outpaces most parts of the country, but three states — Baja California, Jalisco and Nuevo León — have made significant advances. (Moisés Pablo/Cuartoscuro)
Mexico City remains Mexico’s most competitive state for business, while Chiapas is the least competitive, according to an analysis by a leading Mexican think tank.
The Mexican Institute for Competitiveness (IMCO) has published its 2025 State Competitiveness Index (ICE), in which it ranks all 32 federal entities based on their performance across 53 different indicators in six categories called “sub-indexes.”
The sub-indexes are innovation and economy; infrastructure; labor market; society and environment; law; and political system and governments.
Among the 53 indicators are ones that look at GDP growth rates in the 32 states, levels of informality among workers, state government debt, hospital beds per capita, access to the internet and crime rates.
According to IMCO, the ICE “measures the ability of the country’s states to generate, attract, and retain talent and investment.”
“A competitive state is one that makes efficient use of its capabilities to foster a favorable environment that contributes to improving its development and, consequently, the well-being of its inhabitants,” the think tank said in its index report.
IMCO also said that “in an era in which the global rules-based system is being questioned, the best strategy for Mexico is to bet on competitiveness.”
“The current geopolitical environment presents opportunities for the country, as long as it manages to maintain its relative advantage in access to the U.S. market. To capitalize on this situation, Mexico must promote its economic development,” it said.
Mexico City is the only entity in the country deemed to have a “very high” level of competitiveness. (Presidencia)
CDMX comes out on top once again
Mexico City is the only entity in the country deemed to have a “very high” level of competitiveness. The capital — Mexico’s top recipient of foreign investment and a magnet for workers from all over the country — retained its 2024 position at the top of the IMCO index.
“Mexico City positioned itself as the most competitive state, … taking first place in four out of the six sub-indexes assessed. It stood out in the economy and innovation sphere by registering the highest GDP per capita excluding the mining sector (541,916 pesos [US $28,750] per person), a high level of economic diversification (943 sectors), and the second highest patent rate (4.71 per 100,000 economically active people),” IMCO said.
Mexico City also ranked first in the sub-indexes for infrastructure; society and environment; and political system and governments.
A large number of major Mexican and foreign companies have offices in the capital, while the federal government and most of its agencies and departments, as well as some of the nation’s leading healthcare and education facilities, are based in the city. This helps Mexico City attract highly educated workers from around the country and abroad.
Mexico’s next most competitive states
IMCO determined that three states have a “high” level of competitiveness, allowing them to occupy positions 2, 3 and 4 on the ICE. They are:
2. Baja California Sur (BCS): a state that occupies the southern portion of the Baja California Peninsula. It is best known for the twin resort cities of Cabo San Lucas and San José del Cabo. A tourism powerhouse, BCS also ranked as Mexico’s second most competitive state last year.
3. Nuevo León: a heavily industrialized northern border state whose capital is Monterrey. The state moved up one spot on the ICE.
4. Jalisco: a western Mexico and Bajío region state that is home to the major city of Guadalajara. The capital is sometimes referred to as “the Silicon Valley of Mexico” due to the presence of a significant number of tech companies. Jalisco moved up six spots on the ICE.
Baja California Sur was the top state on the “labor market” sub-index.
According to IMCO, that subindex “measures the efficiency of the main factor for production: human capital.”
IMCO determined that 12 states have a “medium-high” level of competitiveness. They occupied positions 5 to 16 on the ICE.
5. Aguascalientes: up one position compared to 24.
6. Querétaro: down one position.
7. Coahuila: down four positions.
8. Chihuahua: up one position.
9. Sonora: down two positions.
10. Yucatán: down two positions.
11. Baja California: up three positions.
12. San Luis Potosí: up six positions.
13. Guanajuato: up nine positions.
14. Hidalgo: up 11 positions.
15. Tamaulipas: down three positions.
16. Sinaloa: down three positions.
Twelve other states are deemed to to have a “medium-low” level of competitiveness. They are Tlaxcala, Colima, Campeche, Durango, Quintana Roo, Nayarit, México state, Puebla, Tabasco, Veracruz, Morelos and Zacatecas.
Those states occupied positions 17 to 28 on the ICE.
Mexico’s least competitive states
Chiapas fell two places compared to the 2024 ICE to occupy the 32nd and final position on this year’s State Competitiveness Index. It is the only state deemed to have a “very low” level of competitiveness.
Chiapas ranked last on the index with poor results on the sub-indexes for society and environment; infrastructure; and labor market, IMCO said.
Among a range of poor results, the think tank noted that Chiapas had the lowest average income among full-time workers (7,059 pesos or US $375 per month), the lowest average level of schooling among people aged 25 or older (7.56 years), and the second lowest proportion of people with technical or higher education (16%).
Rural Chiapas state, known for its coffee and fruit exports, dropped two places on IMCO’s competitiveness index. (Isabel Mateos/Cuartoscuro)
IMCO determined that three states had a “low” level of competitiveness. They occupied positions 29 to 31 on the ICE.
29. Michoacán: no change on the index compared to last year.
30. Oaxaca: up two positions.
31. Guerrero: no change.
Mexico’s three least competitive states are all located in southern Mexico, a disadvantaged part of the country that has been historically neglected.
Oaxaca ranked as Mexico’s least competitive state last year.
The State Competitiveness Index and Plan México
The publication of IMCO’s latest State Competitiveness Index comes five months after President Claudia Sheinbaum presented Plan México, an ambitious economic initiative whose goals include making Mexico the 10th largest economy in the world, reducing reliance on imports from China and other Asian countries and creating 1.5 million new jobs.
IMCO said that the success of the plan “needs local strategies,” and asserted that “the ICE is a tool that allows federal entities to understand their competitive advantages and develop collaborative strategies that help them to exploit their potential and benefit from this industrial policy.”
IMCO outlined “strengths and challenges” of 12 “economic well-being corridors” identified in Plan Mexico.
The challenges included combating insecurity in various parts of the country, increasing economic diversification in several economic corridors and lifting foreign investment in southern states.
IMCO emphasized the importance of security, the rule of law and legal certainty in attracting business to the country’s southern development corridors. (Daniel Augusto/Cuartoscuro)
In its index report, IMCO said that states will “play a key role in the success of industrial policy and must be prepared to take advantage of Plan México to spur productive investment and raise the quality of life of their citizens.”
“To achieve this, they require logistical excellence, abundant energy, a capacity for innovation, talent and a solid rule of law,” the think tank said.
Proposals to support Plan México
IMCO set out proposals in five different areas that are aimed at supporting Plan Mexico achieve its aim of “transforming the economic conditions in the country.”
The think tank proposed:
Promoting innovation and economic diversification, including by supporting the adoption of technologies such as artificial intelligence (AI).
Developing logistical infrastructure, including by investing in infrastructure in states with “high air cargo capacity” such as México state, where the Felipe Ángeles International Airport is located.
Strengthening security, the rule of law and legal certainty, including by bolstering state police forces.
Developing human capital, including by supporting training centers focused on digital skills.
Promoting environmental sustainability, including by developing state-based energy efficiency programs.
* IMCO’s 2025 State Competitiveness Index report (Spanish), which runs to more than 100 pages and includes scorecards for each of Mexico’s 32 federal entities, can be downloaded by clicking the “libro” tab at the top of this page.
International tourists continue to flock to Mexico in increasing numbers to enjoy its sun, sea, food and culture. (Mara Lezama/X)
The number of international tourists traveling to Mexico has increased this year compared to 2024, according to the latest report by the National Institute of Statistics and Geography (INEGI).
INEGI’s data indicates that Mexico received 7.66 million foreign tourists in April, compared to the 6.75 million tourists it received in the same month last year, a 13.5% increase.
The largest year-on-year increase was in cross-border tourists, which grew by 10.9% to 1.53 million in April, compared to 1.38 million in the same month of 2024. Meanwhile, those arriving by air grew by only 0.2% year-on-year in April, but still exceeded 1.9 million people.
As for total spending of international tourists, money spent in Mexico increased by 12.5% year-on-year, reaching US $3.042 billion, up from a previous figure of US $2.703 billion. That increase is the result of the greater number of international tourists entering the country, as the average spending per tourist actually decreased by 0.8% from US $400.17 in April 2024 to US $396.8 in April 2025.
These figures reflect the upward trend in tourism in Mexico. In 2024, the country saw 45.03 million international tourists enter the country, up 7.4% compared to 2023, reflecting a sustained increase since the end of the COVID-19 pandemic.
Looking at the overall number of international tourist arrivals between January and April of this year, the Tourism Ministry (Sectur) revealed that in those four months, air arrivals totaled 7.86 million foreign tourists. Based on data from the Immigration Policy, Registration, and Identity of Persons Unit of the Interior Ministry, this represents an increase of 4.8% in foreign air arrivals compared to the same four-month period in 2024.
The countries that sent the most travelers to Mexico were the United States (4.9 million, though tourism in the oppposite direction has been sluggish), Canada (1.4 million) and Argentina (144,551).
“The sustained growth in tourist arrivals is a good indication that tourism in Mexico is on the right track,” Tourism Minister Josefina Rodríguez Zamora said. “We will continue working to make tourism a generator of well-being for all members of the vast tourism value chain.”
Heineken, celebrating its 135th anniversary in Mexico this year, will add a brewery near Mérida to its seven existing beer plants in Mexico. (Smit Patel/Unsplash)
Mega-beermaker Heineken México has announced an important US $2.75 billion investment for the construction of a new brewery in Yucatán, marking one of the company’s largest recent investments in Mexico.
Heineken CEOOriol Bonaclocha revealed the move during President Claudia Sheinbaum’s morning press conference Wednesday. He said the investment will roll out between 2025 and 2028 and is expected to create 3,000 jobs.
Heineken CEO Oriol Bonaclocha (left) announced the investment at President Sheinbaum’s morning press conference Wednesday, also attended by Economy Minister Marcelo Ebrard (right) and Héctor Ibarzábal, of the Mexican Association of Industrial Parks. (Heineken México/X)
“Today, Madam President, we are here to reaffirm our commitment to Mexico,” Binaclocha said.
Bonaclocha noted that Heineken’s major new investment includes a new brewery in the Kanasín area, just outside the capital of Mérida in Yucatán state.. It will be the company’s eighth plant in the country and will be built after an unprecedented consultation with the Indigenous community local to the area.
“This project is an important milestone for the company, as it marks the first time in Heineken’s history that an Indigenous consultation was conducted, positioning Heineken as the first company in the industry to initiate an open conversation within the community,” Bonaclocha said.
The plant will have the capacity to produce four million hectoliters, with the potential of doubling its capacity if demand requires it.
Bonaclocha said that the products will bear the “Hecho en México” (Made in Mexico) seal. That means they will be identified by the Economy Ministry as having 100% of their inputs originating in Mexico and the manufacturing process itself will have taken place within Mexico.
Sheinbaum celebrated the investment, highlighting that confidence in Mexico remains. “Investments in Mexico continue. Confidence continues,” she said.
Economy Minister Marcelo Ebrard added that Heineken’s investment corresponds to the government’s interest in attracting companies that need water for their production to regions with adequate water resources.
“We’re looking for companies to establish themselves where there’s water, and the southeast has ample water resources,” he explained.
This year, Heineken is celebrating its 135th anniversary in Mexico. Its portfolio in the country comprises 21 brands, including Heineken, Tecate, Indio, Dos Equis, Amstel Ultra and Carta Blanca.
In addition to its existing seven plants in Mexico, the company has a malting plant and a logistics network of more than 170 distribution centers.
The gorgeous highlands northeast of Guadalajara — where ancient civilizations left behind pyramids, petroglyphs and ceremonial centers — is perhaps one of Mexico's most overlooked regions. (Kamran Ali/Shutterstock)
All five of Mexico’s major ecosystems converge in the state of Jalisco. In this article, we’ll provide a guide to the semi-arid scrubland that characterizes the northeast section of the state, popularly known as Los Altos de Jalisco, or the Highlands.
This area has few hills but plenty of flat, grassy plains covered with countless huisaches (acacia trees) and nopales (cactuses). The typical elevation is around 2,000 meters. The terrain favors ranching, and Los Altos depends mainly on raising cattle, closely followed by pigs and chickens.
The Pyramid of Pegueros had a little help from 66,000 cubic tons of earth.
The Upside-Down Wicker Basket
To get a feel for the high flatland environment, visit the ruins of the little-known Pyramid of Pegueros, also called Chiquihuitillo, the Upside-Down Wicker Basket, located 60 kilometers northeast of Guadalajara.
The pyramid is curious because, according to archaeologist Phil Weigand, the pre-Columbian inhabitants of this flat area decided to first build themselves a hill and then construct a pyramid on top of it. To create that hill, Weigand calculated they had to move 66,000 cubic tons of earth.
The main reason I’m sending you to this pyramid is that the spot is only reachable on foot — a short walk of 600 meters — obliging you to hike through the typical scrubland of Los Altos. Here you may come across acacia trees, thistles and maybe even a few Jimson-weed flowers, said to be used as a love potion, but infamous as a drug producing temporary insanity. Could there possibly be a connection?
Hot springs and magnificent views
A hot-spring paradise at the bottom of Tamara Canyon.
When you’ve seen enough thorns and scrub, you can opt for an entirely different environment by heading for the 150-kilometer-long Río Verde Canyon, which runs north and south through the highlands. Here you’ll find majestic waterfalls and, at the bottom, a semi-tropical environment dotted with numerous hot springs.
One of my favorite places in the canyon is Rancho El Venado, which offers bungalows, campsites and a delightful natural hot shower — all of them featuring magnificent views of towering, red canyon walls, 400 meters high.
After a refreshing night at Rancho El Venado, you might want to venture further north in Los Altos to the little-known archaeological ruins of Teocaltitán, 100 kilometers northeast of Guadalajara. Here you’ll find one of those rarities in the flatlands: a natural hill. What better place for pre-Columbian people to construct a ceremonial center?
Ruins of the Cookie People
Between A.D. 400–900, this part of Mexico was controlled by a civilization whose name no one knows. Some call them the Cookie People because the figurines they made were flat and shaped like gingerbread men.
To confuse things even more, archaeologists call them the El Grillo (Cricket) People, after a spot in Guadalajara where their particular architecture was first noticed.
The rectangular “sunken patio” was one of the essential features of their ceremonial centers, and Teocaltitán has one of the best examples of one: a huge flat area where thousands of people gathered, perhaps to dance or to follow a ball game being played not far below the patio.
Typical flat figurines made by the Cookie People over 1,000 years ago.
Apart from these impressive structures, now under restoration, Teocaltitán offers visitors who make it to the top a magnificent view — perhaps the best view you can possibly get — of the mostly flat highlands.
Another little-known archaeological treasure in Los Altos is a lagoon called Presa de la Luz, located 120 kilometers east of Guadalajara near the town of Arandas.
Calendars engraved in rock
In 2006, a local rancher used a tractor to clear a spot on the shore of the Presa de la Luz. Scraping off a thin layer of topsoil, he discovered a great many petroglyphs, some very elaborate. Investigation of the lakeshore revealed a total of 1,200 rock engravings.
Fourteen of these are pecked crosses, which typically consist of 260 small holes or cups, forming a cross inside a circle. As this is the number of days in the Mesoamerican year, a pebble placed in the cups may have served as a practical calendar.
More than a thousand petroglyphs were carved into the soft rock around La Presa de la Luz.
La Presa de la Luz may be unique for the sheer number of engravings on its shore. Curiously, only 15 kilometers north of this lagoon, there is another unique archaeological site, which I call the 1,800 Bowls of the Río Raso.
Chiseling a bowl-shaped hole on the surface of a rock has a purpose similar to chiseling a spiral: Both were considered the equivalents of simple prayers for rain.
After wandering about the highlands, you’ll surely work up an appetite. Here’s a chance to try one of Los Altos’ specialties: carne asada.
I am told that the very best place to get it is at a restaurant called Carnitas El Alteño in the town of Jalostotitlán. Here, you will also find numerous brands of locally made tequila with a unique highland flavor.
John Pint has lived near Guadalajara, Jalisco, for more than 30 years and is the author of “A Guide to West Mexico’s Guachimontones and Surrounding Area” and co-author of “Outdoors in Western Mexico.” More of his writing can be found on his website.
For years, craft brewers have dreamed of using homegrown Mexican hops in their creations rather than foreign-grown ones they must use. (Stanzilla/Wikimedia Commons)
Mexico is the world’s number one beer exporting country and No. 22 in overall beer consumption. But while beer has been produced here in commercial quantities since the 1800s, until 14 years ago, 100% of the hops used in Mexican beer were imported from abroad, at a price tag ofmore than US $34 million a year.
While the idea of a 100% Mexican beer has been dreamt of before, it’s taken a long time for it to become a reality.
Quality control at Monstruo de Agua. The vast majority of hops that Mexican craft brewers use must be imported, which means the brewers struggle with inconsistent product quality when hops come from as far away as New Zealand. (Monstruo de Agua)
“Since we started [brewing] 12 years ago, it has always been our goal to have beer not only made in Mexico, but made of Mexico,” says Matias Veracruz, co-owner and brewer atMonstruo de Agua brewery in Mexico City. “When we started, everyone imported everything, and there were no national vendors of malt or hops or anything. So it was always our goal to find Mexican hops.”
Monstruo de Agua, like most craft brewers in Mexico, historically got their hops from the northwest United States: specifically in Washington state’s Yakima Valley, in Oregon and in Idaho. Along the same latitude are the hops grown in Germany, the Czech Republic, Slovenia and China. On the far end of the globe, you will find production in Australia, Argentina, Chile and New Zealand.
There’s a correlation between these places and the requirements of hops: short but intense, light-filled summers (about 16 hours of sunlight a day) and a winter period that’s not too chilly. Mexico, with its almost-even hours of light and dark year-round, is not ideal, but growers here have been trying to make it work for the last 15 years.
Miguel Loza started what was likely the first hops project in the country, planting in 2011 in Valle de Guadalupe, Mexico’s famed wine region. Originally from Ensenada, Loza started making his own beer when he was living in San Diego and decided to move back to Ensenada to try his hand at growing hops.
“I was totally on my own,” he says. “The only people I could ask questions to were in Oregon or Washington. I didn’t have a mentor or anything. I remember one person told me I should just grow avocados or something else because hops would never grow in Mexico.”
But they did grow. At the height of his project, Loza was able to obtain about a kilo and a half of hops from each of his 1,200 plants. Even that, he admits, was difficult; growing directly in the ground caused accidental cross-pollination of varieties, changes in flavor profiles due to the specific terroir where the hops were being grown and reduced control over the plants’ health.
Miguel Loza in 2017, when his business La Casa del Lúpulo was growing hops commercially. (Cerveceros de Mexico/Facebook)
Hops, much like grapes, are the type of plant that’s particularly sensitive to the ecosystem it inhabits. Water, soil, nutrients — even human touch — can affect the way the flowers taste, smell and act during growth. It’s part of what makes this plant interesting, but also what makes it complicated.
Loza eventually had to give up the farm in Ensenada when his daughter got sick and his family moved to Texas, but he still grows a small amount of hops for his own personal use.
“It was always more of a labor of love,” he says, “I knew I would never make any money. It was more for the satisfaction of being able to say we have 100% Mexican hops.”
Nine years later in 2020, Daniele Gamba startedLupex in Jalisco. A much smaller and more experimental project, Gamba worked in conjunction with the local university, growing less than 100 plants of five different varieties. These hops were planted directly in the ground with the addition of grow lights to control the plants’ flowering phase and to give them their required 16 hours of summer sunlight.
According to Gamba, they were able to achieve two yearly harvests of about 3.5 kilograms of hops per plant — an astounding amount since the average yield per plant hovers around 2 kilograms.
In the end, Gamba didn’t have enough land (he judged he would need 5 hectares to make the project economically feasible), nor could he find any local farmers willing to take on hops production, even with his technical support.
Also in 2020, Claudia Viloria and her partner Pepe Iracheta beganLúpulos Igor in Zacatlán de las Manzanas, Puebla. They currently have the oldest plants of any project — the hops that they are growing hydroponically in a greenhouse are three years old.
“The craft beer industry is growing a lot and quickly, and now with the issue of the tariffs, it’s going to be even more difficult to import supplies,” says Claudia. “We’re an alternative, especially for many brewers looking to create a product that’s 100% Mexican. There aren’t that many hops producers, and to be able to [provide for the demand], we will have to work together.”
Lúpulos Igor’s 400 plants produced between 40–50 kilograms in each of their first two growth cycles, and this year, as the plants reach full maturity, Claudia hopes each will produce 1 kilogram. They’ve been working with Monstruo de Agua,Pecados de la Malta and other craft brewers, but don’t yet have the production to commit to big contracts. Their future goal is 10,000 plants, which will require a substantial investment.
“It’s a good thing that we have other jobs,” she says, chuckling. Claudia works in public policy and Pepe is an urban planner. “Our work allows us to support this project, but setting it up and keeping it running is a big investment.”
“When I first met the people from Lúpulos Igor, I basically purchased all the hops they had on them,” says Orlando Lara of Pecados de la Malta. “The beer we made with it won awards in Mexico, Colombia and Peru. We were thrilled. If you buy at supply stores, much of [the hops] is repackaged, previously opened, old, with lots of quality issues. So, instead, I started to buy directly from Yakima Valley in Washington or New Zealand, but the delivery takes time, and that also degrades the quality. The resin flavors of Lúpulos Igor’s experimental varieties, you are never going to find in prepackaged hops.”
In 2022, the most recent hops project,GroAltos, was formalized after Oscar Martínez and his partner made a first unsuccessful attempt to grow hops in Chiapas. In 2022, they planted on land outside of Guadalajara but struggled with the first round of plants. They now have 1,500 one-year-old plants on less than a hectare of land, but they hope to expand to 50 times that size one day.
How viable is the budding Mexican hops industry? In my conversations with growers and beer makers, I felt a tentative optimism saddled with a touch of frustration at the barriers.
What is obvious is that there is little communication and information shared among growers themselves, despite their seemingly strong relationships with local brewers.
“I had people tell me don’t talk about the lamps you are using, don’t give away your information,” says GroAltos’ Martínez. “But at the end of the day, in order for the industry to grow, there has to be some level of transparency. By hiding the information, you make yourself feel important, but the truth is you’re just like everyone else; what’s really valuable is your [personal] experience.”
Another concern I heard repeated was the cost of building the necessary infrastructure (in all cases, trestles; in others, lamps, greenhouses and hydroponic systems).
Gamba floated the idea that brewers could come together to support growers, as investors who could be paid back in harvest. But Martínez points out that local hops are an unnecessary luxury to many brewers who have access to high-quality hops imported from the U.S. at a decent price. He instead believes that the push should be for greater government support.
A meeting of the minds at GroAltos, one of Mexico’s latest ventures aiming to supply Mexico’s craft brewers with hops grown in Mexico. (GroAltos)
“Not that there’s [no government support], but there needs to be more awareness developed that hops are strategic for the beer industry — one of Mexico’s biggest exports, and that this has to do with commercial sovereignty.”
From a sustainability perspective, there’s an assumption that the cost to set up and run a hops farm is much less than the energy costs to import them from 2,600 miles away. But more study is needed to come up with the hard data on what makes the most sense environmentally — a question that can no longer be left out of any cost-benefit analysis in our era of climate change.
Other barriers seem easier to overcome. With time and professionalization, the idea of Mexican hops will seem less risky and wild. In the same way that the vineyards of the Bajío region, for example, took several years to start producing top-quality wine, these nascent hops growers are likely to produce a better product year over year as their expertise grows, as the plants adapt and mature and as growers better understand the requirements of growing hops on Mexican soil.
And the benefits of local hops are many: interesting flavor profiles, increased freshness, less dependence on international sources, easier and faster delivery and the reinvestment of money into local business owners and farmers. Brands like Monstruo de Agua, Pecados de la Malta and others for whom making 100% Mexican beer is a priority, look poised to continue supporting this burgeoning industry, and I, for one, am excited about the future of hops in Mexico.
Lydia Carey is a freelance writer and translator based out of Mexico City. She has been published widely both online and in print, writing about Mexico for over a decade. She lives a double life as a local tour guide and is the author of “Mexico City Streets: La Roma.” Follow her urban adventures on Instagram and see more of her work at mexicocitystreets.com.
"Claudia Sheinbaum came out and encouraged more protests in L.A. and I condemn her for that. She should not be encouraging violent protests that are going on," Noem told reporters in the Oval Office on Tuesday. (X/Cuartoscuro)
At her Tuesday morning press conference, President Claudia Sheinbaum considered the question of who was responsible for the acts of violence committed during protests against immigration raids in Los Angeles in recent days.
Later on Tuesday, United States Homeland Security Secretary Kristi Noem accused Sheinbaum of encouraging “violent protests” in the city.
“Claudia Sheinbaum salió y alentó más protestas en Los Ángeles, y yo la condeno por eso. Ella no debería estar alentando protestas violentas como las que estamos viendo”, dijo Kristi Noem, secretaria de Seguridad Nacional de Estados Unidos, junto a Donald Trump. pic.twitter.com/OzWpehufDm
“Claudia Sheinbaum came out and encouraged more protests in L.A. and I condemn her for that. She should not be encouraging violent protests that are going on,” Noem told reporters in the Oval Office.
“Here I leave my statement from yesterday in which I clearly condemn the violent demonstrations,” she wrote above video footage of her speaking at her Monday press conference.
At that press conference, Sheinbaum said “we don’t agree with violent actions as a form of protest” and “the burning of police cars seems more an act of provocation than resistance.”
She also said that “we call on the Mexican community to act peacefully and not succumb to provocations.”
In her social media message in response to Noem, Sheibaum also wrote that “our position is and will continue being [one of] the defense of honest, hardworking Mexicans who help the economy of the United States and their families in Mexico.”
“I’m sure that dialogue and respect are the best means for understanding between our people and our nations, and I’m sure that this misunderstanding will be cleared up,” she concluded.
On Tuesday morning — hours before the woman she hosted at the National Palace earlier this year leveled a serious accusation against her — Sheinbaum also spoke about her likely face-to-face meeting next week with United States President Donald Trump.
Who was responsible for acts of violence during protests in LA?
A reporter noted the prevalence of protesters in Los Angeles waving Mexican flags. He asked the president whether she would call on Mexicans in the U.S. to not take the national flag to demonstrations against immigration raids.
“We don’t know how much provocation there really was because … [there were] a lot of compatriots [in the U.S.] who said on social media that there were people they didn’t know [at the protests], who did these [violent] actions,” she said, referring to the torching of vehicles and the hurling of projectiles at authorities.
Sheinbaum repeated her call for Mexicans to not succumb to “any provocation” and to “not promote any act of violence.”
“We are not in favor of that,” she said.
Asked whether she was saying that “infiltrators” were responsible for acts of violence in L.A., Sheinbaum responded:
“We don’t have all the information to be able to assert it. What is certain is that there were violent actions with which we don’t agree.”
Thankful for the clarity of @LAPDPoliceChief Jim McDonnell in a moment when most are afraid to stand to identify the actual background of those who riot. pic.twitter.com/M7os2Bpmxs
L.A. Police Chief Jim McDonnell blamed hooded and masked “anarchists” for acts of violence in the city during protests.
“When I look out there at the people doing the violence. That’s not the people that we see during the day who are legitimately out there exercising their First Amendment rights to be able to express their feelings about the immigration enforcement issue,” he said on Monday.
“These are people who are all hooded up. They’ve got a hoodie on, they’ve got face masks on. They’re people who do this all the time, get away with whatever they can. Go out there from one civil unrest situation to another using the same or similar tactics frequently, and they are connected. Some would call them anarchists,” McDonnell said.
What will Sheinbaum and Trump speak about if they meet in Canada?
Sheinbaum said that security, migration and trade will be the top issues for discussion if she holds a bilateral meeting with Trump during next week’s G7 Summit in Canada.
The president, who revealed on Monday that she would attend the event, didn’t confirm that she would have a one-on-one meeting with Trump in Alberta, but indicated that bilateral talks would take place.
With regard to migration, she said she would speak to Trump not just about stopping migrants from reaching the United States but also about “Mexicans who live in the United States and contribute to the U.S. economy.”
“That obviously has to be part of the agenda,” Sheinbaum said.
With regard to trade, she noted that there are “outstanding” issues between the two countries, namely tariffs on Mexican steel, aluminum and cars as well as goods that don’t comply with the USMCA.
Security, migration and trade are “the three main issues that I believe must be dealt with in the meeting,” Sheinbaum said.
“… In fact, they are issues that have been dealt with bilaterally by the different secretaries of state since the Trump administration came in,” she added.
Finsa co-founder and CEO Sergio Argüelles said the general perception among U.S. lawmakers is one of support for the regional integration model. (FINSA/Facebook)
FINSA, one of the leading industrial real estate developers in Mexico, announced a US $500 million investment for the acquisition of 70 industrial warehouses in the country, marking one of the most significant moves in the Mexican industrial real estate market this year.
According to the company’s CEO and co-founder Sergio Argüelles, the acquisition plan includes a strategic alliance with BBVA to acquire operational properties from companies. These companies will be able to obtain immediate liquidity through the transaction and become Finsa tenants through a leasing arrangement.
Finsa, one of Mexico’s leading industrial real estate developers, will invest US $500 million in warehouses, both for manufacturing and logistics. (FINSA/Facebook)
The investment will focus on 12 states and seven key industrial corridors, primarily in the north and center of the country, including regions such as Monterrey, Saltillo, Juárez, Tijuana-Mexicali, El Bajío and Jalisco. Sixty-one percent will correspond to warehouses dedicated to manufacturing and 39% directed towards logistics spaces.
The move occurs amid increasing uncertainty in the Mexican industrial real estate sector due to tariffs imposed by President Donald Trump’s administration in the United States.
In an interview with the newspaper El Economista, Argüelles explained that in 2024, the sector recorded its worst quarter in the last decade in terms of occupancy and construction of industrial warehouses. However, he noted that “Mexico remains a strategic country for North American manufacturing.”
While a revision of the United States-Mexico-Canada Agreement (USMCA) is anticipated in 2026 — or even later this year — Argüelles said the general perception among U.S. lawmakers is one of support for the regional integration model.
Despite the initial impact of trade uncertainty with China and doubts about legal certainty in Mexico — particularly surrounding the judicial elections — Finsa assures that signs of recovery for the industrial warehouse sector are emerging entering the second half of 2025.
Fibra Monterrey, another real estate trust focused on industrial properties primarily in the north of the country, announced that they also plan to invest some US $400 million in their business model. That model is centered around acquiring, managing, and renting properties to generate returns for their investors.
“We are still in a state of volatility and uncertainty due to the tariffs, but we think the waters have calmed down considerably,” Javier Llaca, Director of Operations and Acquisitions at Fibra, told the newspaper El País.
“Companies that were cautious, waiting to see what would happen, have resumed projects. If trade with the U.S. and public policy in Mexico are well combined, we could be facing a second wave of nearshoring,” he stated.
Sunday’s incident at the Guatemala border occurred after Chiapas state police were ambushed by armed civilians during an operation that had been ordered by Governor Eduardo Ramírez. (Damián Sanchez/Cuartoscuro)
Mexico’s war on drug trafficking crossed into Guatemala on Sunday, and now the Central American nation’s Foreign Relations Ministry is demanding answers about the illegal incident.
A Chiapas state police operation against suspected drug traffickers resulted in a car chase leading to Mexico’s southern border on Sunday afternoon. The police killed four gunmen, then pursued other suspects into Guatemalan territory, engaging them in a shoot-out in a Guatemalan border town.
Se extiende tiroteo hasta Guatemala
Policías de Chiapas cruzaron hasta Guatemala para enfrentarse a balazos con integrantes de un grupo criminal, lo cual dejó un saldo preliminar de al menos cuatro abatidos; ese punto de la frontera cerrado y el despliegue del Ejército… pic.twitter.com/EfQ9DM8v9f
At least three Chiapas police vehicles crossed into Guatemala in a dramatic scene that saw Guatemalan military personnel and National Civil Police vehicles arrive on site as the gun battle raged.
In the letter of protest, Guatemala expressed “grave concern” for the lack of “reciprocal respect” at its shared border, deplored the “violations of international rights” and decried the failure to coordinate security actions with Guatemala authorities.
“This should not happen,” Sheinbaum said Tuesday. “We have spoken to (the Chiapas governor), telling him that Mexican security forces should not enter Guatemala in such a reckless manner.”
She said Foreign Relations Minister Juan Ramón de la Fuente had been in touch with the Guatemalan government to reiterate Mexico’s commitment to coordinating security actions.
Sunday’s incident at the Guatemala border occurred after Chiapas state police were ambushed by armed civilians during an operation that had been ordered by Governor Eduardo Ramírez in response to the murder of five state police on June 2.
The state’s newly created Pakal Rapid Reaction Force was sent to the municipality of Frontera Comalapa, a region where four drug cartels have long battled to exercise control of valuable smuggling routes for migrants, guns and drugs.
According to the Chiapas Attorney General’s Office (FGE), the Pakales and other state security forces carried out an operation in the town of Sabanalito, just a few kilometers from the Guatemalan border. The Pakales were attacked, leading to the car chase that ended in a gun battle in the village of La Mesilla, Guatemala.
At least three Pakal vehicles crossed over the border as Guatemala’s Army and its National Civil Police Force joined the fray in a confusing scene.
Citing a video circulating on social media, the newspaper El Universal reported that one Guatemalan Army vehicle appeared to fire shots at the Pakales. Guatemalan authorities claim their officials did not intervene, according to the news site Animal Político.
In a video described by ABC News, armed men in ballistic vests and carrying rifles can be seen shouting at the open driver-side door of a Chiapas state police armored vehicle, with the border crossing visible in the background.
As gunfire sprayed Chiapas police trucks and civilian vehicles, a Guatemalan military truck with a soldier in the turret sits in the middle of the melee.
At least four suspects were killed in the shootout on the Chiapas side of the border, but several others escaped into Guatemala. The FGE said state authorities confiscated four rifles, a grenade launcher, two pistols, two bulletproof vests, 17 magazines and four armoured vehicles.
Further roiling the situation, on Monday, Chiapas Governor Eduardo Ramírez publicly accused Guatemalan security forces of colluding with drug gangs. Sheinbaum criticized Ramírez for this statement, saying on Tuesday, “We are not in agreement with this statement and his police should be sanctioned.”
Ramírez defended the Pakales, who, according to the newspaper El País, have faced accusations of collusion with organized crime gangs, as well as wanton violations of human rights. Just last month, the governor fired a Pakales commander who was accused by a subordinate of cooperating with crime gangs.
