The monthly minimum wage in 2026 will rise to 9,582.47 pesos. (Hazel Cárdenas/Presidencia)
President Claudia Sheinbaum announced on Wednesday a 13% increase in Mexico’s minimum wage for 2026, the second increase since she became president in October 2024.
Sheinbaum has promised that by 2030, the basic wage will be enough to purchase 2.5 canastas básicas— a “basket” of the 24 most essential pantry items — per month.
The increase will lift the minimum wage from the current 278.8 pesos (US $15.30) per day to 315.04 pesos ($17.20) per day starting on Jan. 1, 2026. In the Northern Border Free Zone, the increase will be 5%, with an increase from 419.88 pesos ($23) to 440.87 pesos ($24.10) per day.
El 1.° de enero 2026 subirá el salario mínimo general de 278.80 a 315.04 pesos diarios; en la Zona Libre de la Frontera Norte sube cinco por ciento: de 419.88 a 440.87 pesos.
El segundo piso de la Cuarta Transformación continúa la economía moral y el humanismo mexicano. pic.twitter.com/AA9j75d9DU
“Very good news, an agreement between the business sector and the workers of Mexico,” Sheinbaum said during her Wednesday morning press conference.
The president said that the move had the support of all sectors involved, including the government, unions and employers.
The minimum salary for 61 professions, trades and specialized jobs listed by the government will increase at the same rate as the general minimum wage in their respective geographic areas.
The new general minimum wage calculation is based on the minimum wage in effect in 2025, plus an Independent Recovery Amount (MIR) of 17.01 pesos (90 cents), and a 6.5% adjustment. The MIR was first applied to set the minimum wage in 2017.
In addition to increasing the minimum wage, Sheinbaum’s government has introduced a wide range of welfare programs to help alleviate poverty nationwide.
In August, President Sheinbaum said that the social programs and increases to the minimum wage in recent years were the principal reasons why more than 13 million Mexicans were lifted out of poverty between 2018 and 2024. The U.N. Economic Commission for Latin America and the Caribbean (ECLAC) also credits minimum wage hikes for Mexico’s leadership in reducing poverty in the region.
President Sheinbaum stands among business leaders at Wednesday's morning press conference, where she announced the finalization of a new minimum wage as well as progress on her plan to reduce the workweek to 40 hours. (Graciela López/Cuartoscuro)
Mexico’s standard workweek will be reduced by two hours annually in the coming years to reach 40 hours in 2030, according to a proposal presented by the federal government on Wednesday.
Mexico currently has a standard 48-hour, six-day workweek. The establishment of a 40-hour workweek over five days — a demand of workers across the country — requires a reform to the Mexican Constitution.
If approved by Congress, Mexico’s standard workweek will be 46 hours in 2027, 44 hours in 2028, 42 hours in 2029 and 40 hours in 2030. (Hazel Cárdenas/Presidencia)
At President Claudia Sheinbaum’s Wednesday morning press conference, Labor Minister Marath Bolaños outlined the proposal to gradually reduce the workweek to 40 hours.
He said that the first two-hour reduction to the 48-hour workweek would occur in 2027, with additional reductions in the following years.
Thus, Mexico’s standard workweek is slated to be:
46 hours in 2027
44 hours in 2028
42 hours in 2029
40 hours in 2030, the final year of Sheinbaum’s six-year term.
Bolaños noted that lawmakers will need to approve changes to the constitution and the Federal Labor Law in order to establish a 40-hour workweek.
Constitutional changes require two-thirds congressional support, but achieving that threshold should not be a problem, especially considering that the ruling Morena party and its allies dominate both the Chamber of Deputies and the Senate.
The workweek legislation is expected to be approved in 2026.
Bolaños said that the proposal to reduce the workweek to 40 hours won’t allow workers’ salaries or benefits to be cut.
He said that the establishment of a 40-hour workweek will give workers more time for rest and recreational activities, and have a positive impact on their health, including by reducing fatigue levels, which in turn should reduce workplace accidents.
Citing “previous experiences in other countries” and academic research, Bolaños also said that the reduction in the length of the standard workweek will guarantee “decent working conditions” and lead to an increase in productivity.
In addition to gradually reducing the standard workweek to 40 hours, the proposal presented by the labor minister has a range of other aims. They include:
Establishing a limit of a maximum of 12 hours work per day — a regular eight-hour shift plus a maximum of four hours of overtime.
Establishing that overtime hours must be paid at double the agreed rate for normal hours.
Establishing that workers can’t work overtime hours on more than four days per week.
Prohibiting overtime hours for workers aged under 18.
Bolaños stressed that completing overtime hours is not an “obligation” for workers — i.e., they can’t legally be penalized or dismissed by their employers for refusing to work beyond their normal shift.
Workers, business leaders and union reps were consulted
Bolaños highlighted that the government sought “broad consensus” on the proposal to reduce Mexico’s standard workweek. To achieve that consensus, he noted that forums and roundtable discussions were held across the country between June and late November.
Bolaños said that more than 2,000 people participated in the dialogue, including workers, businesspeople, union representatives, academics and government officials.
Bolaños explained on Wednesday that in addition to phasing out the 48-hour standard workweek, the labor reform seeks to cap workdays at 12 hours and establish double pay for overtime, defined as hours 9-12. (Hazel Cárdenas/Presidencia)
He said that the planned establishment of a 40-hour workweek is “one of the policies that best condenses the spirit of Mexican Humanism,” the term former president Andrés Manuel López Obrador used to describe the political and economic philosophy of the “fourth transformation” (4T) political project he created and which is now led by Sheinbaum.
“It gives time back to workers so they can freely decide what to do with it and, in this way, have the conditions to achieve both material and spiritual well-being, because we must not forget that time is a finite and irreplaceable resource,” Bolaños said.
Sheinbaum said that in 2026 “companies will make the necessary adjustments to guarantee” that the workweek will decline by two hours per year starting in 2027 in order to reach 40 hours in 2030.
“It doesn’t imply greater costs for the business sector,” she said, adding that some industries will see productivity gains from a shorter working week.
Sheinbaum stressed that workers, the business sector and unions reached a “consensus agreement” on the 40-hour workweek proposal.
For his part, the president of the Business Coordinating Council, an umbrella organization representing 12 business groups, said that a “responsible process of tripartite dialogue” took place before the formulation of the 40-hour workweek proposal.
“For the Mexican business sector, the comprehensive development of workers and their families is a priority,” Francisco Cervantes said, adding that the reduction of the workweek “will bring benefits for companies and for society in general.”
How many Mexicans currently work more than 40 hours per week?
Bolaños presented data from the national statistics agency INEGI that showed that 13.4 million Mexicans currently work more than forty hours per week. That figure represents just over one in five workers, as Mexico’s workforce is made up of around 60 million people.
Of the 13.4 million people who work more than 40 hours per week, 8.6 million are on the job for 41-48 hours, while 2.76 million put in 49-57 hours, according to the INEGI data.
Just over 2 million workers are at work for 58 hours or more per week.
According to INEGI, the sectors with the highest numbers of workers who will benefit from the reduction of the workweek are the manufacturing, retail, hospitality, transport and wholesale commerce industries.
While it will be another 13 months before the gradual reduction of the standard workweek will commence, provided it’s approved by Congress, there have already been some positive changes for Mexican workers under the 4T governments led by López Obrador and Sheinbaum.
The Paris-based organization predicts that Mexico's GDP will increase 0.7% this year and 1.2% in 2026. (Galo Cañas/Cuartoscuro)
The Organization for Economic Co-operation and Development (OECD) has cut its 2025 and 2026 growth forecasts for the Mexican economy.
The Paris-based organization predicts that Mexico’s GDP will increase 0.7% this year and 1.2% in 2026. The OECD’s latest forecasts for this year and next are both 0.1 percentage points lower than its predictions in the Economic Outlook, Interim Report published in September.
In the December Economic Outlook report published on Tuesday, the OECD also included a forecast that the Mexican economy will grow 1.7% in 2027.
The OECD’s adjustment to its 2025 forecast came after Mexico’s national statistics agency INEGI reported in late November that the Mexican economy grew 0.4% in the first nine months of the year. The Bank of Mexico (Banxico) subsequently cut its 2025 growth forecast for the Mexican economy to 0.3% from a previous prediction of 0.6%.
The OECD explained the rationale for its lower 2025 forecast for the Mexican economy in the Mexico section of its latest Economic Outlook report.
“After remaining resilient during the first half of 2025 despite heightened global uncertainty, economic activity has weakened, with GDP contracting by 0.3% in the third quarter (seasonally adjusted),” the OECD wrote.
The organization also noted that “private consumption is moderating in line with a slowdown in formal job creation, particularly within the manufacturing sector.”
The 1.2% forecast expansion for the Mexican economy next year and the 1.7% increase in GDP predicted for 2027 would represent “modest” growth, according to the OECD.
Still, such growth rates would represent significant improvements from the weak performance of the Mexican economy in 2025.
The OECD wrote that “private consumption will be supported by low unemployment and declining inflation” in the next two years.
Among the OECD’s other predictions for Mexico in 2026 and 2027 are that:
Private investment will gradually benefit from lower interest rates, though it will remain constrained by high domestic and global uncertainty.
Public investment will remain subdued as part of efforts to reduce the fiscal deficit.
Export growth will be dampened by trade tariffs and high global uncertainty.
The OECD said that “a swift and successful renegotiation” of the USCMCA trade pact between Mexico, the United States and Canada in 2026 could help to reduce uncertainty and thus “support investment and exports more strongly than currently anticipated.”
How does Mexico’s projected growth compare to the forecasts for the US and Canada?
According to the OECD, economic growth in the United States and Canada will outpace Mexico’s GDP expansion in 2025 and 2026.
The OECD is predicting a 2% expansion in the U.S. this year and 1.1% growth in Canada.
In 2026, it forecasts that the U.S. economy will expand 1.7% and the Canadian economy will grow 1.3%, just above the predicted expansion of the Mexican economy.
The OECD anticipates 1.9% growth in the U.S. in 2027, and 1.7% in Canada — on par with the forecast for Mexico.
Growth in Mexico is dependent to a significant extent on growth in the United States, the world’s largest economy. Mexico and the U.S. are each other’s largest trade partners and the economies of the two countries are highly integrated.
The OECD forecasts that the global economy will grow 3.2% this year, 2.9% in 2026 and 3.1% in 2027. It anticipates 1.7% growth across the 38 OECD countries in 2025 and 2026, before a slight increase to 1.8% in 2027.
Fruit-flavored beverages like Boing! are among the most popular products made by Pascual Cooperativa. (Cooperativa Pascual)
One of the most indelible flavors of my childhood is Boing! — a juice drink that seemed to
shadow every moment of daily life. It nestled in lunchboxes, accompanied our favorite
tacos, and appeared unfailingly wherever families gathered. Long before we understood
the environmental costs of plastic bags and straws, pouring a Boing! into a thin, crystal
clear plastic bag was a small ritual of play and nourishment, a tactile delight that defined
an era.
So, a few weeks ago, when I read that Boing! — after 80 years of being woven into the fabric of Mexican life — may soon disappear under legislation that raised the price of sugary beverages, the news struck with a familiar ache. The sadness came not only from
nostalgia but from the belief that behind this policy lies a fundamental miscalculation.
You can educate the public about balanced diets and curb aggressive advertising, but
punitive measures rarely unravel problems with deep cultural and logistical roots.
Pascual–Boing
The beverage brands and line of products made by Pascual Cooperativa. (Cooperativa Pascual)
Its story starts in the late 1930s and early 1940s, when Rafael Víctor Jiménez Zamudio
founded a modest company selling popsicles and bottled water. But Don Rafael had
always harbored a larger ambition: to offer refreshing beverages made with real fruit.
The company opened its first facilities in the San Rafael and Tránsito neighborhoods of
Mexico City. Its first major success was Pato Pascual, a soda marketed as the first
100% Mexican soft drink made with fruit. By the late 1950s, the company introduced
Lulú, another product crafted for a growing urban market seeking quality and flavor at
an accessible price.
By 1960, Pascual was thriving, expanding into other Mexican states and even reaching
the United States and Japan. It also launched Boing!, a non-carbonated drink made with
natural pulp and free of preservatives. Distinct from the rest of the brand’s
portfolio — and from its competitors — Boing drew on the cultural memory of aguas
frescas, tapping into Mexico’s deep affection for natural fruit beverages. Don Rafael, still
pursuing durability and innovation, approached the Swedish company Tetra Pak and
secured exclusive rights to its now-iconic triangular packaging, making Pascual the first
and, for a time, the only brand to use what was then considered the most hygienic
packaging available.
Made in Mexico: Cooperativa Pascual & Boing!
By the decade’s end, Pascual purchased a plant from Canada Dry and took over its
production lines. But the relationships with both Tetra Pak and Canada Dry would
fracture after a workers’ strike erupted.
La Guerra de los Patos
One of Mexico’s defining labor movements was led by Pascual Boing’s workers. In March
1982, amid a national economic crisis, the government decreed mandatory wage increases of 10%, 20% and 30%. Many companies complied; the Pascual Boing family
did not.
Frustrated by precarious working conditions, like 12-hour shifts, employees sought
support from the Mexican Workers’ Party. With its guidance, they launched a strike on
May 18, 1982, and shut down both the plants in Mexico City. Don Rafael assumed they
would eventually return. They did not.
On May 31, he made the unthinkable decision: he ordered that gunfire be opened on
the demonstrators. Two people were killed. Seventeen were wounded. Public outrage
surged. Workers, joined by allies, occupied the offices of the Federal Conciliation and
Arbitration Board. Eventually, the movement prevailed.
Pascual workers went on strike for wage increases in May 1982. (Cooperativa Pascual)
In August 1984, in an unprecedented resolution, it was agreed that the strike and the
so-called “Duck War” would end with the creation of a cooperative. The assets of
Refrescos Pascual S.A. would be transferred to its workers.
Pascual Workers’ Cooperative S.C.L.
On May 27, 1985, the newly formed Cooperative launched the Aguascalientes Project.
Eight trucks traveled to the Aguascalientes plant — where Boing! was still being
produced — to load products and return to what was then the Federal District, with the
intention of reopening operations.
The workers reclaimed control of the production process, not by abolishing hierarchy
but by humanizing it. Critical decisions were now made in assemblies where every
member had a voice.
They resumed activities with a renewed purpose: to craft natural, healthy, nourishing
beverages that could satisfy consumers of all ages, within a dignified and equitable
workplace.
Today, the cooperative employs 4,500 people across multiple Mexican states. It stands
as an exception in an industry dominated by multinational corporations, reinvesting
profits into cooperative members and the agricultural communities it supports. Its
financial philosophy is modest by design: prioritize employment and affordability over
profit maximization.
Adapting to a modern lifestyle
For more than a decade, Cooperativa Pascual has contended with policy initiatives
meant to limit sugary drink consumption. When the first tax on sugary beverages was
implemented in 2014, Boing!’s sales fell by 50%. Recovery took years, as the
cooperative chose job preservation over aggressive cost-cutting.
Boing! is one of many sugary drinks under fire and facing tax hikes. (Cooperativa Pascual)
Since then, additional tax increases and regulatory measures have continued to weigh
heavily on production and distribution. To tackle this impact, they have added Agua
Pascual and Leche Pascual to their product lineup. Yet Boing!, Lulú sodas, Pato
Pascual and Mexicola remain their most popular products.
Boing and street food
Street food has been a cornerstone of Mexican life since pre-Hispanic times, yet Boing!
stands out as the first mass-produced commercial beverage to integrate organically into
this popular gastronomic ecosystem without flattening its diversity. At food stalls across
the country — though less frequently now than in years past — you can still find Boing! as
the traditional companion to tacos, gorditas, soups, panuchos and an endless array of
antojitos.
But Boing now faces an unprecedented threat. In March 2025, the Mexican government
launched the “Healthy Life” program, banning sugary drinks from all schools nationwide
and eliminating a significant segment of Boing!’s traditional market, which is a great
initiative, to be fair.
In October 2025, Congress approved a dramatic increase to the Special Tax on
Production and Services (IEPS) for sugary drinks. The tax will rise from 1.64 to 3.08
pesos per liter in 2026 — an 88% jump. Drinks with non-caloric sweeteners will face a tax
of 1.5 pesos per liter.
For a cooperative with just 2% of the national soft drink market that is competing against
Coca-Cola’s approximate 60% and PepsiCo, this escalation is disproportionate and
potentially catastrophic. Pascual’s leadership warns sales could shrink by as much as
60%, forcing the suspension of a new plant slated to open in Nuevo Laredo, Tamaulipas,
in 2026. A 900-million-peso investment is now frozen.
The paradox of public health legislation
The tragedy here is that the legislation threatening Boing! was designed in the name of
public health, to combat Mexico’s staggering rates of childhood obesity. According to
the National Health and Nutrition Survey 2020–2023, 5.7 million children ages 5–11 and
10.4 million adolescents ages 12–19 live with obesity.
Pascual is one of the few beverage makers to sweeten their drinks with real cane sugar. (Alejandro Linares Garcia/Wikmedia Commons)
But the law lacks the nuance to distinguish between different production models. Coca-
Cola and PepsiCo can rapidly reformulate their beverages with synthetic sweeteners
and qualify for the lower tax rate of 1.5 pesos per liter. Pascual, operating under a
cooperative ethos and cultural mission, remains committed to natural cane sugar and
rejects high-fructose corn syrup (HFCS), the cheaper alternative used by the U.S.
multinationals.
This commitment has real consequences. HFCS is inexpensive and helps large
corporations absorb tax burdens. Mexican cane sugar is costlier but nutritionally
superior — and central to Boing’s identity as an authentically Mexican beverage. Pascual
requested that Congress create differentiated tax mechanisms or incentives for social-
economy companies using natural and domestic ingredients. The plea went
unanswered.
Pascual’s leadership is weighing a complete reconfiguration of its products — or the
possibility of closing operations altogether. For the cooperative’s 4,500 workers and the
livelihoods of 785 cooperative members hang in the balance, alongside thousands of
sugarcane producers who rely on Pascual as a major buyer. Senator Carolina Viggiano
has warned that Mexican cane growers have already begun reducing supply because it
is no longer viable without large, consistent purchases from Pascual. This would mean
job loss in a sector where cooperatives already occupy a precarious position.
A political and cultural crossroads
In 2025 and 2026, Boing! stands at an economic, political and cultural crossroads. So, the fundamental question emerges: Is Mexico prepared to sacrifice the icons of its
social economy and popular gastronomy on the altar of well-intentioned but blunt
regulation — one that cannot distinguish what deserves protection (cooperative labor,
national production, cultural tradition) from what should truly be discouraged?
As a ’90s kid who grew up on radioactive chips, fluorescent ICEEs, candies that
probably violated several laws of physics, Morgan & Drake sodas with what looked like
floating confetti, and liters upon liters of Boing! as the perfect companion to my taquitos,
I learned a crucial truth at home — one that shaped both my health and my relationship
with food: having a treat now and then is perfectly fine, so long as you maintain a
balanced diet.
Yet maintaining a clean, healthy diet is far more difficult for most Mexicans, for reasons
that run deep in culture, infrastructure and economics — reasons that I’ll explore in future
articles.
Maria Meléndez is an influencer with half a degree in journalism
Social clubs, milestone anniversaries and the holiday spirit await in San Miguel de Allende this month. (Revista Aventurero)
San Miguel just wrapped up its annual Día De Muertos celebrations and the annual blues and jazz festival, and now the city is starting to prepare for the holiday season with special events and activities for Christmas.
Before we get into those, let’s take a look at what’s going on with three of San Miguel’s longtime nonprofit organizations, starting with Audubon de México.
Looking out (and up) for birds
(April Gaydos)
Established here in 1967, Audubon de México offers monthly birdwalks from January through November, cleanups at the Presa Allende — and weekly kayak outings there through Amigos de la Presa — and nature programs for area public school kids.
It’s migratory season, so birds are arriving around San Miguel, said April Gaydos, the group’s president. Those with a sharp eye, or good binoculars, might see orioles, vermilion flycatchers, blue grosbeaks, warblers, blue-grey gnatcatchers, hawks and the crested caracara, which Gaydos said is her favorite bird.
Audubon de México has participated in the annual international Christmas Bird Count for at least the past decade, she noted, and has three sites for local volunteers to visit. This year, the bird count is taking place on Dec. 20 from 7:45 a.m. until noon.
“We always count birds and report them to eBird at the Cornell (University) Ornithology Lab,” Gaydos said. “You can learn a lot just by visiting there to see what kind of birds are in the region.”
Want to participate in the bird count? You don’t need any experience, Gaydos said, and Audubon de México can provide binoculars. For contact information, see the group’s website.
A cultural center’s anniversary celebrations
(Cathy Siegner)
El Sindicato, an independent, alternative community cultural center located at Recreo 4, just observed its 30th anniversary and closed out the celebrations with a Nov. 30 concert of classical and opera music, plus a Cuban music concert. More information can be found here.
The center has two main rooms, an auditorium with room for 120, a literary café and other offerings. Events at El Sindicato include plays, music and dance performances, conferences and workshops. There is also a variety of art and dance classes available.
El Sindicato was founded in 1995, following the closure of the textile factory where the Fábrica la Aurora art gallery complex is now located. Families from the textile workers’ union and members of the public subsequently brought the ties formed there to El Sindicato to provide a social and cultural space for all.
A plant conservatory’s renovation
(Cathy Siegner)
The El Charco del Ingenio Botanical Garden and Protected Natural Area on the northeast edge of San Miguel reopened its Conservatory of Mexican Plants on Nov. 21 to show the public some recent renovation work. There were guided tours of the renovated areas, along with the herbarium, and a presentation of the botanical species discovered at El Charco.
That discovered species is Viridantha minuscula, now known as the Charco bromeliad. It was sighted on the cliffs at El Charco by biologist José Viccon and later found to be a rare example of a plant with no previous record.
The conservatory greenhouse was built in 2000 and contains cacti and other succulent plant specimens, including some that are rare or endangered. There are also native fish and aquatic plants there.
El Charco is open daily 9 a.m.–5 p.m., and general admission is 100 pesos. Annual memberships and renewals are 2,000 pesos but are reduced to 1,800 pesos until Dec. 15. Membership allows free access for the member and two guests for one year and discounted access to special tours and events.
A thank-you party is also coming on Dec. 3, from 4-6 p.m. at Posada Corazón, Aldama 9, with memberships available there or at El Charco.
Christmas is coming to town
(Cathy Siegner)
San Miguel is getting ready to honor this very special season. Christmas decorations are starting to show up across the city, and we’re seeing ads and posters for art performances, holiday-themed mercados, pop-up craft sales, neighborhood special events, menu specials and much more.
Just a sample of what’s coming up:
Paprika Restaurant and Music House, Ancha de San Antonio 9, will hold a Christmas Bazaar on Dec. 6 from noon to 5 p.m., featuring music, art, food, jewelry, crafts and gifts.
A two-day Heart to Heart Charity Bazaar to benefit Patronato Pro Niños is coming Dec. 6 and 7 from 10 a.m. to 2 p.m. at Reforma 75c in Ignacio Ramirez.
The Biblioteca Pública, Insurgentes 25, has at least four Christmas-related events on its calendar: a Nativity play on Dec. 18; a Nativity posada and also a performance of “The Nutcracker” on Dec. 19; and a concert of Christmas carols and seasonal songs on Dec. 22.
The International Festival of Jazz & Blues is presenting a Christmas Jazz Concert featuring singer Tenoch Niño de Rivera on Dec. 20 at 6 p.m. at Cent’anni Restaurant, Canal 34.
A cross-cultural art pilgrimage
(Tamanna Bembenek/LinkedIn)
Mexico News Daily (MND) Co-owner Tamanna Bembenek, who has shared her art through previous MND articles, invites the public to her art show, “Between Worlds,” on Dec. 20, Jan. 24 and Feb. 7. More information is available here or by contacting info@sanmiguelartloft.com.
“After years of focusing on optimizing my schedule and career, I reconnected with art when I moved to Mexico,” Bembenek said. “Life slowed down, and my mind found space to reflect, get bored and find inspiration.
“I rediscovered color and began painting again, exploring themes like anxiety, healing, solitude and growth. Over the past five years, my art has become a bridge between two ancient cultures: Mexico and India. It reflects a journey toward stillness, intention and healing.”
The show is not commercial but a work in progress, and nothing is for sale, she said, adding, “If you’ve ever felt ‘between worlds’ in your life — career, culture, identity or adulthood — this show may resonate with you.”
Learn something new
(Instituto Allende)
In-person and online registration is open at the Instituto Allende’s Lifelong Learning Program, Ancha de San Antonio 9. Courses are offered from January through March, and the cost ranges from free to 400 pesos.
Subjects vary widely from the political to the literary, with a generous dose of history and culture. It doesn’t pay to delay since three of the courses are already sold out or full. For specifics on the courses and how to register, visit the program’s website.
Cathy Siegner is an independent journalist based in San Miguel and Montana. She has journalism degrees from the University of Oregon and Northwestern University.
The latest default rate report comes as the Mexican economy stagnates. (Moisés Pablo/Cuartoscuro)
The non-performing loan portfolio of consumer credit reported by Mexican banks reached 53.895 billion pesos (US $2.9 billion) in October, the highest figure ever, according to Mexico’s central bank (Banxico).
The overdue balance of consumer credit — e.g., credit cards, payroll loans, personal loans and auto loans — comprises 3.3% of the overall loan portfolio of private banks at the end of October, which stood at nearly 1.6 trillion pesos (US $87.4 billion).
The rise in credit card default is not a new phenomenon. The non-performing loan portfolio has been rising to unsettling levels for several months. (@LagoBusiness/X)
Banxico reported that the overdue portfolio in the credit card segment reached 16.944 billion pesos (US $929 million), which represented a slight decrease of 1.2 percent compared to the 17.1 billion pesos (US $934 million) reported in the same month of 2024. Total credit card delinquency represents 3.5% of the current portfolio, which reached 482.5 billion pesos (US $26.4 billion).
The delinquency rate on payroll loans (12 billion pesos, or US $656 million) increased by 5.3% over last year, reaching 2.8% of the current portfolio of 425 billion pesos (US $23.2 billion).
Personal loans represented the greatest increase in delinquency rates, rising 47% in real terms compared to October 2024. The outstanding balance reported by Banxico stood at 17.1 billion pesos (US $934 million) in October, a worrisome 6.1% of the current portfolio.
The non-performing loan portfolio has been rising to unsettling levels for several months. During the June 2025 reporting period, Banxico revealed that it had reached a then-record 47.35 billion pesos (US $2.6 billion). In September, that number had climbed to 49.494 billion pesos (US $2.7 billion), a 7.7% increase over September 2024.
The latest default rate report comes as the economy has stagnated, leading into the two busiest months for the financial system, November and December, which included the El Buen Fin shopping extravaganza and will include the beginning of the year-end sales period.
The negative economic growth recorded in 3Q 2025 was the first decline since the first quarter of 2021, when GDP fell 2.6% due to the economic and health crisis caused by the COVID-19 pandemic.
The increase in non-performing consumer loans reflects the economic pressures families face in the context of economic deceleration. The newspaper Debate suggests that financial institutions and government authorities might have to take action in order to mitigate the impact on the economy and on consumer well-being.
The show, opening Dec. 12, is slated to run year-round with up to 10 shows a week depending on the season. (Instagram)
A new Mexican venue for Cirque du Soleil is about to open in the Riviera Nayarit, where resort operator Grupo Vidanta is positioning VidantaWorld as a global theme-park contender to compete with the likes of Las Vegas and Orlando.
Starting Dec. 12, the resort will host LUDÕ, Cirque du Soleil’s second permanent show in Latin America and its first aquatic creation since “O” in Las Vegas.
Cirque du Soleil’s custom-built water theater is located in the BON (Beauty of Nature) theme park, which in turn is part of VidantaWorld’s huge resort complex in Nuevo Nayarit, formerly Nuevo Vallarta. (Vidanta on X)
The show will be held in a custom-built water theater in VidantaWorld’s BON (Beauty of Nature) — a 150-acre luxury theme park that’s still largely under construction within the larger VidantaWorld resort complex in Nuevo Nayarit (formerly Nuevo Vallarta).
Its location in the state of Nayarit, along the Ameca River, is about a 20-minute drive from the Puerto Vallarta International Airport in Jalisco. It’s in the southern portion of the Riviera Nayarit, a nearly 200-mile stretch of luxury beach towns and resorts along the state’s coastline.
The show is slated to run year-round with up to 10 shows a week depending on the season.
The VidantaWorld Theater, designed by architect Arturo Hernández, is conceived as the park’s architectural icon, echoing the 2-year-old, state-of-the-art Sphere in Las Vegas and the geodesic sphere (known as Spaceship Earth) at Epcot in Walt Disney World, Florida.
The lotus flower–inspired shell, built with about 3,500 tons of steel, will glow with projections at night.
The 696-seat venue combines a 360-degree aquatic stage, wraparound “human aquarium” and a submersible platform that can switch from tank to dry stage in seconds.
The LUDÕ show will center on Ludovico, a theater director seeking inspiration in water and play on a global journey that begins at a Mexican cenote.
The 75-minute mega-show uses underwater and freediving acts in a fully immersive 360-degree environment, with action occurring above, around and below the audience.
Just over 10 years ago, Cirque du Soleil premiered the show JOYÀ at the Vidanta Riviera Maya complex near Playa del Carmen, Quintana Roo. It has stood as Cirque du Soleil’s only resident presentation in Latin America and the first to include a dinner show.
LUDÕ will also include options for a three-course menu, champagne and tiered experiences from balcony-only to VIP dinner packages. Tickets will range from 2,350 pesos (US $128) per person (for the show only) to 7,780 pesos (US $425) for dinner, unlimited champagne and preferred seating.
BON is part of the 1,011-hectare VidantaWorld complex.
It is in the process of being built as a “luxury” park that limits capacity and replaces long lines with controlled admission and transport systems.
Planned attractions include Tecuani Beast (Latin America’s only double-launch roller coaster), the Vista Wheel, Floresta Drop and nightly entertainment shows — positioning BON as a high-end alternative to traditional mega-parks.
Sheinbaum has not yet met face to face with Trump, although the two leaders have spoken on the telephone on numerous occasions. (Galo Cañas/Cuartoscuro)
At her Tuesday morning press conference, President Claudia Sheinbaum told reporters that her government has no evidence that money has been laundered via the transfer of remittances to Mexico.
Sheinbaum also responded to questions about potential meetings with two of the world’s best-known and most influential men.
Here is a recap of the president’s Dec. 2 mañanera.
Sheinbaum: No evidence that remittances have been used to launder money
A reporter noted that incoming remittances to Mexico increased significantly during Andrés Manuel López Obrador’s 2018-24 presidency, and asked the president whether any Mexican authorities have received information about the international transfers being used to launder money.
His question came four days after the U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert “as part of Treasury’s effort to prevent the exploitation of the U.S. financial system by illegal aliens in the United States seeking to move illicitly obtained funds.”
Sheinbaum responded that her government has “no evidence” that the growth in incoming remittances during López Obrador’s presidency was related to money laundering.
She highlighted that there are around 40 million first, second, third and fourth generation Mexicans in the United States, and, citing Bank of Mexico data, noted that some 15 million people regularly send remittances to Mexico.
Sending remittances home “has a lot to do with solidarity, with mutual support, with not abandoning each other,” Sheinbaum said.
“I have a sister who has lived in Los Angeles for 35 years. She doesn’t have to send me money because I don’t need it, but she’s always attentive to my children, always, because she’s their aunt. And I can assure you that there are millions of families like mine,” she said.
With regard to the reporter’s assertion that some Mexicans are sending large amounts of money to Mexico from Ecuador and Colombia — the world’s biggest cocaine producer — Sheinbaum said the matter needs to be investigated.
“If in any case there is an illegal issue, it is investigated and punished,” she said.
Currently, Sheinbaum stressed, “there is no evidence of money laundering” related to the transfer of remittances to Mexico.
If that crime was detected, authorities would have to “attend to it” and “attack it,” she said.
“But we’re not going to criminalize all those who send remittances, are we?”
Insight Crime, a crime-focused think tank and media organization, wrote in a 2021 report that “organized crime groups have long exploited … [remittances] to launder ill-gotten proceeds.”
Sheinbaum seeking a call with Pope Leo
A reporter said he had information from the Vatican that Pope Leo XIV would attend the inauguration next March of a remodeled Estadio Azteca, a huge stadium in Mexico City that will host FIFA World Cup matches in 2026. He asked Sheinbaum whether she could confirm that the pope would come to Mexico City and also visit Tijuana in early 2026.
“We don’t have the information,” the president responded.
“In fact, I’m seeking a call with the pope, I’m making it public here. We’re seeking a call in order to have a meeting here,” Sheinbaum said.
▶️ “Estoy buscando una llamada con el Papa”: Sheinbaum anuncia que buscar formalizar vista de León XIV a México
Sheinbaum noted that Interior Minister Rosa Icela Rodríguez delivered an invitation to the pope to visit Mexico when she attended his inaugural Mass in May.
“Now we want to formalize it. But there is no information yet about whether he will come to the inauguration of the Azteca. … But we do want him to visit Mexico,” she said.
Will Sheinbaum attend the World Cup draw with Trump?
“I believe we will inform you tomorrow,” the president said.
Sheinbaum said last Friday that she would attend the draw if Trump and Canadian Prime Minister Mark Carney confirmed they would be present.
Both men will indeed be at the draw, which will decide which countries will play each other in the group stage of the 48-team tournament that will be co-hosted by the United States, Mexico and Canada.
Sheinbaum said on Friday that if she does decide to go to Washington for the draw, she and her government colleagues would look at the “possibility of a meeting” with the U.S. president.
Sheinbaum has not yet met face to face with Trump, although the two leaders have spoken on the telephone on numerous occasions.
By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)
With the hurricane season officially ending last Sunday, Quintana Roo residents and visitors can exchange trepidation about the sea being a harsh mistress for the pleasure of tranquil sunsets such as this one over Isla Mujeres. (Elizabeth Ruiz/Cuartoscuro)
The Atlantic hurricane season has come to an end with no serious incidents reported in Quintana Roo despite its long Caribbean coastline, Governor Mara Lezama announced Monday.
Quintana Roo’s good fortune was not due to a lack of powerful hurricanes. In fact, for only the second time on record, three Category 5 storms made landfall during the Atlantic hurricane season, which ended Nov. 30. Besides them (Erin, Humbert and Melisa), the 13 weather systems in 2025 included seven tropical storms, one subtropical storm, Category 4 Gabrielle and Category 2 Imelda.
Quintana Roo Gov. Mara Lezama speaks at the State Civil Protection Council, where she praised her state’s civilians and officials for working together during the hurricane season to mitigate the damage from storms or other natural challenges. (Mara Lezama)
Yet none of them threatened Quintana Roo’s tourism industry or caused anywhere near as much damage as Hurricane Erick on Mexico’s Pacific coast, which made landfall as a Category 3 in June, causing 24 fatalities and more than US $275 million in damage throughout the states of Oaxaca and Guerrero.
Speaking at the Second Ordinary Session of the State Civil Protection Council, Lezama credited the state’s preparedness for the clean outcome as she praised the people of Quintana Roo and the armed forces for building a culture of prevention.
“The fact that there were no incidents demonstrates that when we work together, each from our own position and assuming our responsibility, we are capable of facing any challenge,” the governor said.
She stressed the importance of constant monitoring, as well as public awareness about the effects of climate change on Quintana Roo’s already at-risk location. She also highlighted the extensive cleaning and clearing works that took place before and during hurricane season to mitigate the impact of a potential storm, with a task force of 4,000 personnel prepared to respond to a severe weather event.
Not all countries in the Northern Atlantic Ocean were as fortunate as Mexico. The 2025 Atlantic hurricane season will likely be remembered for Hurricane Melissa and the devastation it caused across Jamaica and Cuba, where communities are still recovering.
In a statement released a couple of weeks after his arrest at the Doña Ana County International Jetport on July 25, 2024, Zambada said that he was kidnapped and forced onto a U.S.-bound private plane after traveling to Culiacán, Sinaloa, with the belief that he was going to help resolve a dispute between the Sinaloa governor and a former mayor of the state capital. The former mayor, Héctor Cuén, was murdered the same day Zambada was arrested in the U.S.
After Guzmán López pleaded not guilty to drug trafficking charges in late July 2024, the 39-year-old’s lawyer, Jeffrey Lichtman, criticized — but did not refute — an allegation by Zambada’s lawyer that Guzmán López had “forcibly kidnapped” El Mayo and put him on a plane against his will.
Nicknamed “El Güero Moreno,” Guzmán López is one of four sons of El Chapo who are collectively known as “Los Chapitos.”
The four brothers are (or were in the case of two of them) leaders of a Sinaloa Cartel faction of the same name.
Zambada, a septuagenarian, founded the Sinaloa Cartel with Guzmán Loera and others in the 1980s. Over a period of decades, El Mayo, El Chapo and other Sinaloa Cartel members built a multi-billion-dollar empire on cocaine and heroin, among other drugs, as well as human trafficking.
Prior to his arrest in the United States last year, Zambada had never been taken into custody. Before his kidnapping last year, the United States government was offering a reward of up to US $15 million for information that led to his arrest. Zambada is scheduled to be sentenced on Jan. 12.
Guzmán López’s plea agreement
Guzmán López reached a plea agreement with U.S. authorities that, according to Lichtman, is expected to allow him to avoid a sentence of life imprisonment.
In court in Chicago on Monday, he pleaded guilty to two counts of drug trafficking and continuing criminal enterprise. The New York Times reported that “most of the charges to which Mr. Guzmán López pleaded guilty were in an indictment unsealed in Chicago in April 2023, accusing him of joining his brothers in taking control of their father’s faction of the Sinaloa cartel after a federal judge in Brooklyn sent El Chapo … to prison for life in 2019.”
Dressed in orange prison garb during his court appearance on Monday, Guzmán López told U.S. District Judge Sharon Johnson Coleman in softly-spoken English that he was taking medication for anxiety and that he has a college degree, according to the Chicago Tribune.
When Coleman asked him what he did for a living, he said “drug trafficking,” to which the judge responded: “Oh, that’s your job. All right — there you go.”
Coleman did not set a sentencing date, but asked the parties to provide a status update on June 1, 2026, according to the Chicago Tribune. Assistant U.S. Attorney Andrew Erskine said in court that in exchange for Guzmán López’s ongoing cooperation, prosecutors would recommend a sentence that is more lenient than life imprisonment, but not less than 10 years behind bars. The defendant agreed to forfeit US $80 million as part of his plea deal.
According to the written plea agreement, Guzmán López’s drug trafficking career began “no later than in or about May 2008,” at which time the defendant was 21 years old and his father was at the helm of the Sinaloa Cartel.
The plea agreement states that Guzmán López “together with Ivan Archivaldo Guzmán Salazar, Jesús Alfredo Guzmán Salazar, Ovidio Guzmán López and others, did knowingly and intentionally engage in a continuing criminal enterprise.”
Another section of the 35-page agreement reads: “As a leader of the Sinaloa Cartel, Guzmán López employed individuals and provided security and territory for individuals who oversaw the manufacturing and distribution in Mexico, and the importation from Mexico into the United States for distribution, of large quantities of fentanyl powder and pills.”
He was also involved in the trafficking of large quantities of other drugs to the United States, including cocaine, heroin and methamphetamine. Guzmán López also admitted to bribing officials in Mexico and using firearms and other weapons to commit acts of violence, including murder, “against law enforcement, rival drug traffickers and members of their own trafficking organization.”
Ivan Archivaldo Guzmán Salazar, Jesús Alfredo Guzmán Salazar and Ovidio Guzmán López are brothers of Joaquín Guzmán López and fellow leaders of “Los Chapitos.”
According to Guzmán López’s plea agreement, the kidnapping of Zambada — referred to as “Individual A” in the agreement — and his transfer to the United States occurred as follows:
Prior to July 25, 2024, Guzmán López arranged for a meeting to take place in Sinaloa involving Zambada and others.
Guzmán López lured Zambada to the meeting by telling him that his presence was needed to resolve a disagreement in which he “and others” were involved.
When Zambada arrived at the meeting, Guzmán López asked him to “come speak to him in a private room in the building, in which, unbeknownst to Individual A, Guzmán López had removed the glass from a floor-to-ceiling window.”
Guzmán López closed and locked the door after he and Zambada entered the room.
Multiple men who “were working for Guzmán López” subsequently entered the room through the window, handcuffed Zambada and put a bag over his head.
The armed men then carried Zambada through the window, “and placed him across their laps in the backseat of a waiting pickup truck.”
Guzmán López got in the truck, which was driven for 10-15 minutes to an air strip where a small plane was waiting.
The armed men put Zambada on the plane, which Guzmán López and a pilot — whose identity hasn’t been revealed — also boarded. Zambada was “zip-tied to one of the seats.”
After the plane took off, Guzmán López “prepared a drink with sedatives, some of which he drank himself, and some of which he gave to Individual A.”
“As Guzmán López had previously directed, the pilot flew the plane from Mexico into the United States, and the plane landed in New Mexico,” where Guzmán López and Zambada were arrested.
What was Guzmán López’s motivation for kidnapping Zambada?
According to the plea agreement, “Guzmán López coordinated and committed the kidnapping of Individual A, among other reasons, in the hopes of receiving cooperation credit from the United States government for himself and his brother [Ovidio].”
“However, Guzmán López acknowledges that the United States government did not request, induce, sanction, approve or condone the kidnapping. Guzmán López further acknowledges that … he will not receive cooperation credit for the kidnapping, nor will his brother,” the agreement states.
The U.S. government denied involvement in the kidnapping plot from the outset.
However, “experts thought it would be virtually impossible to pull off without U.S. authorities having some knowledge,” the Associated Press reported.
Joaquín (L) and Ovidio (R) Guzmán López. (Social Media)
Former Mexican president Andrés Manuel López Obrador and current President Claudia Sheinbaum both asserted that the U.S. government had some kind of involvement in the abduction of Zambada and his subsequent transfer to the U.S.
Shortly before he left office in October 2024, López Obrador asserted that the United States shared blame for the eruption of violence in and around Culiacán because it carried out the “operation” that resulted in the arrest of Zambada, whose “Los Mayos” faction of the Sinaloa Cartel has now been involved in a virtual war against “Los Chapitos” for over a year.
By “operation,” he apparently meant a negotiation with Guzmán López that he believed resulted in the delivery of Zambada to U.S. law enforcement authorities in New Mexico.
In August 2024, Mexico’s Attorney General’s Office said it was investigating whether Guzmán López had committed treason, given that kidnapping a person in Mexico for the purpose of handing him or her over to the authorities of another country constitutes that crime.
The bigger picture
Guzmán López’s guilty plea came amid the Trump administration’s militarized crackdown on drug trafficking to the United States. In recent months, the U.S. military has carried out at least 21 strikes against alleged drug trafficking boats in the Caribbean Sea and the Pacific Ocean, killing more than 80 people. The legality of those strikes has been questioned by legal experts.
Earlier this year, the Trump administration designated a number of Western Hemisphere criminal groups as foreign terrorist organizations (FTOs). The Sinaloa Cartel and the Jalisco New Generation Cartel are among six Mexican organizations that were classified as FTOs.
“Would I launch strikes in Mexico to stop drugs? It’s OK with me,” Trump told reporters in the Oval Office on Nov. 17. “Whatever we have to do to stop drugs.”
Sheinbaum has ruled out the possibility of U.S. military action on Mexican soil, and frequently asserts that Mexico would never accept any kind of violation of its sovereignty. In 2025, her government has transferred 55 cartel figures to the United States amid pressure from the Trump administration — including in the form of tariffs — to do more to stem the flow of fentanyl and other drugs across the Mexico-U.S. border. The Mexican government deployed 10,000 National Guard troops to the northern border region earlier this year and has taken a more proactive approach to combating cartels than the administration of ex-president López Obrador, whose so-called “hugs, not bullets” approach to security was criticized by U.S. authorities.
On Sunday, the federal government announced that a well-known fentanyl trafficker and high-ranking operative in the Sinaloa Cartel had been killed during a navy-led operation in Sinaloa. Pedro Inzunza Coronel was wanted in the United States on narco-terrorism, drug trafficking and money laundering charges.
