MEXICO Trends and Developments Contributed by: Alejandro Stamoglou, Jesús Pérez Alcántar and Julio Jiménez Manrique, Bello, Gallardo, Bonequi y García, S.C.
Political Context In October 2025, the current president completed her first year in office, marking this period with initiatives in areas such as energy, public security, migration, anti-money laundering and foreign trade. These priori - ties have been influenced by slow economic growth, a complex relationship with the United States and broader geopolitical dynamics. For example, there has been a notable shift in invest - ment strategies within the energy sector to stimulate economic activity in this historically strategic area. Likewise, over the past year, the government has pro - moted the railway sector, encouraging passenger rail transport through the construction and maintenance of rail lines. Reducing crime rates remains a top priority for the Mexican government, particularly those related to drug trafficking, extortion and homicides. Efforts have focused on strengthening co-ordination between fed - eral and state authorities and addressing organised crime and migration-related challenges. These actions occur in the context of increasingly frequent requests from United States authorities to combat such crimes, which have been considered determining factors in political and economic relations. In this regard, inter - national co-operation between Mexico and the United States on security matters has been strengthened over the past year. Anti-money laundering policies have also been rein - forced following United States authorities’ designation of several Mexican financial institutions as structures facilitating operations allegedly linked to illicit activi - ties. Measures include enhanced regulatory over - sight, stricter due diligence controls and advanced technologies to detect unusual transactions, aiming to mitigate risks and ensure compliance with interna - tional standards. In other areas, such as social security, employment, health and education, the administration has main - tained continuity with previous policies. Public spend - ing continues to prioritise subsidies for vulnerable groups, such as older adults, while minimum wage increases remain a cornerstone of social welfare and income redistribution. Fiscal policy has also remained
agreement undergoes substantial modifications dur - ing the renegotiation scheduled for 2026. Other measures included government plans to foster public investment, develop infrastructure and promote joint ventures with private entities in strategic sectors such as energy, initiatives that had remained stalled under the previous administration. These efforts seek to stimulate economic activity and attract foreign direct investment, although their implementation fac - es challenges related to budgetary constraints and execution capacity. In 2025, external debt became a key factor in under - standing Mexico’s economic dynamics. The govern - ment maintained an active presence in international markets, carrying out historic issuances of sovereign bonds. It is estimated that the external debt of the public sector grew by approximately 17.4% compared to 2024, reflecting a more aggressive financing strat - egy. As a result, external economic factors such as exchange rates are expected to continue influencing this area, posing important challenges for economic stability in the coming years. Notably, the state-owned oil company Petróleos Mexicanos (Pemex) remains a critical player in the national economy. In recent years, Pemex has faced significant financial pressures due to its heavy tax bur - den and high debt levels, limiting its ability to meet contractual obligations. The government has contin - ued implementing measures to alleviate this situation, including debt issuance, capital injections and other financial support mechanisms. Beyond its ideological significance, Pemex is essential for macroeconomic stability and energy development, given its impact on public finances and the trade balance. In the macroeconomic sphere, the central bank fol - lowed the global trend of reducing benchmark inter - est rates, with the latest cut of 25 basis points in December 2025, bringing the rate to 7.00%. Inflation remained stable throughout the year, closing at 3.72% in December. These indicators reflect a cautious mon - etary policy aimed at balancing growth and price sta - bility amid global uncertainty.
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