FX.co ★ Mexico GDP Confirmed at Contraction

In the third quarter of 2025, Mexico's GDP experienced a seasonally adjusted contraction of 0.3% compared to the previous quarter. This development aligns with market expectations and confirms the preliminary estimates. It marks the first economic contraction since the last quarter of 2024, following a 0.6% expansion in the previous period. Output in the manufacturing sector decreased by 1.5%, largely due to uncertainties surrounding the vehicle market and key export-driven industries, affected by a new wave of tariffs imposed by the United States, Mexico's primary export partner. Meanwhile, the output in primary industries saw a significant rise of 3.5%, and the services sector reported a slight increase of 0.2%. Compared to the same period the previous year, the Mexican economy contracted by 0.1%, marking its first annual decrease since the final quarter of 2021.