Mexican economy recovers in third quarter as trade worries fade

Mexico’s economy rebounded in the third quarter, official data showed on Tuesday, helped by stronger industrial output and a jump in services that reflected a surge in consumer confidence in the wake of elections.

The economy grew 0.9 percent in seasonally adjusted terms in the third quarter, bouncing back from a 0.2 percent contraction in the previous three-month period, according to a preliminary estimate from national statistics agency INEGI.

Growth in services was supported by the biggest jump in consumer confidence on record after the landslide victory of leftist Andres Manuel Lopez Obrador in July’s presidential election.

Industrial output picked up from a slump in the wake of a new trade deal with the United States.

Analysts are divided on the outlook ahead. Some think spending projects by Lopez Obrador could lift growth next year, but others fear uncertainty around his economic policies could paralyze investment.

Compared with the same quarter a year earlier, the economy grew by 2.6 percent in unadjusted terms, INEGI said.

In late August, Mexican negotiators agreed to an updated North American trade deal with the United States, with Canada joining the accord a month later.

While the deal must still be ratified in all three countries, the accord helped calm investor uncertainty after months of often contentious talks.

Analysts noted the United States, the destination for around 80 percent of Mexican exports, had stronger-than-expected growth in the third quarter.

Analysts at Capital Economics said lower inflation, which has been easing from a more than 16-year high, and increased spending under Lopez Obrador should boost growth next year.

The incoming president has pledged to roll out cash transfer programs to the young and elderly and ramp up building projects, including a new oil refinery.

But Alberto Ramos at Goldman Sachs said there was “rising market apprehension” about what policy direction Lopez Obrador will take once he assumes office on Dec. 1 that could make national businesses “more defensive in their spending and investment decisions.”

On Monday, Lopez Obrador said he would cancel a new airport backed by the country’s business elite, sparking the biggest slump in local financial markets since the surprise election of U.S. President Donald Trump.

Mexico’s economy rebounded in the third quarter, official data showed on Tuesday, helped by stronger industrial output and a jump in services that reflected . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • puerto-vallarta-rainfall-hurricane-flossie-july-2025Puerto Vallarta braces for torrential rains as Hurricane Flossie gains strength Puerto Vallarta faces a high risk of flooding as Hurricane Flossie intensifies in the Pacific. Torrential rains and overwhelmed drainage systems pose major challenges for the city. Puerto Vallarta, a city wedged between the Sierra Madre mountains and the Pacific Ocean, is no stranger to dramatic weather shifts—but this summer, the skies are testing the…
  • tropical-storm-flossie-hurricane-mexico-pacific-coastTropical Storm Flossie to Strengthen into Hurricane as It Tracks Along Mexico’s Pacific Coast Tropical Storm Flossie is expected to become a Category 2 hurricane by July 2 as it moves parallel to Mexico’s Pacific coast, bringing dangerous rainfall, wind, and surf. Tropical Storm Flossie is on the verge of forming from Tropical Depression Six-E and is forecast to strengthen rapidly into a hurricane as it parallels Mexico’s southwestern…
  • hurricane-flossie-strengthens-july-1-2025Hurricane Flossie will bring tropical storm conditions to parts of Guerrero, Michoacán, Colima, and Jalisco Hurricane Flossie intensifies off Mexico's Pacific coast with winds near 90 mph. Heavy rain, flooding, and tropical storm conditions expected in parts of Guerrero, Michoacán, Colima, and Jalisco. Hurricane Flossie continued to intensify early Tuesday morning as it moved west-northwestward off the coast of southwestern Mexico, prompting tropical storm warnings and watches across multiple states.…
  • tropical-storm-flossie-mexico-coast-rain-surf-alertCabo Corrientes under tropical storm watch as Flossie expected to Bring Heavy Rain and Dangerous Surf to Southwestern Mexico Tropical Storm Flossie is forecast to strengthen and may impact Mexico's southwest coast from Zihuatanejo to Cabo Corrientes with heavy rain, flooding, and hazardous surf early this week. Tropical Storm Flossie is expected to deliver heavy rains, gusty winds, and dangerous surf conditions to Mexico’s southwestern coast in the coming days, prompting authorities to issue…
  • raw-sewage-playa-los-muertos-puerto-vallartaMore Raw Sewage Dumping at Playa Los Muertos Appear to Come From Local Hotel Business owners in Puerto Vallarta are demanding action after raw sewage was discovered leaking onto Playa Los Muertos, raising public health and tourism concerns. A raw sewage leak at Playa Los Muertos in Puerto Vallarta has sparked outrage among local tourist service providers and business owners, who say the contamination is driving away visitors and…
  • tropical-storm-flossie-strengthens-mexico-june-2025Tropical Storm Flossie Strengthens Off Mexico’s Pacific Coast, Could Become Hurricane by Tuesday Tropical Storm Flossie gains strength off southwestern Mexico, with hurricane status possible by Tuesday. Storm warnings issued from Punta San Telmo to Playa Perula. Tropical Storm Flossie continues to gain strength off Mexico’s Pacific coastline, prompting tropical storm warnings and watches across several southwestern states. According to the National Hurricane Center (NHC), Flossie is expected…
  • cancun-beach-cleanup-sargassumMassive Beach Cleanup to Combat Sargassum in Cancun After a week of the Cancun’s tourism department denying sargassum existed and insisting media photos were fakes, over 600 public servants and volunteers joined the first simultaneous beach cleanup. In a bold step toward environmental preservation and tourism sustainability, Cancun's Municipal President Ana Paty Peralta led the city’s first simultaneous beach cleanup effort this week.…
  • oregon-murder-fugitive-extradited-puerto-vallartaFugitive Wanted for 2008 Oregon Homicide Captured in Puerto Vallarta and Extradited to U.S. Jesús Rodríguez Borrayo, a fugitive for 17 years, was extradited from Mexico to Oregon for his role in a 2008 drive-by shooting that left one dead. He was located in Puerto Vallarta. A man wanted for murder and other violent crimes in the United States for nearly two decades has been extradited after being found…
  • cancun-2025-sargassum-beaches-and-activitiesSargassum won’t ruin your Cancun vacation, there are plenty of clean beaches and tourist activities As the 2025 sargassum season continues through September, visitors to Cancun can still enjoy clear beaches like Playa Delfines and Playa Caracol. As the 2025 sargassum season intensifies across Quintana Roo, tourists are finding it more difficult to enjoy the region’s iconic white-sand beaches without encountering the unsightly brown seaweed. While the influx of sargassum…
  • tropical-wave-7-floods-bacalar-chetumal-emergency-responseTropical Wave Floods Bacalar and Chetumal as Navy and Army Activate Emergency Plans Torrential rains from Tropical Wave 7 flood Bacalar and Chetumal, prompting emergency response from the Navy and Army. Several towns remain isolated in southern Quintana Roo. Torrential rains caused by Tropical Wave Number 7 have flooded multiple communities in southern Quintana Roo, prompting a joint emergency response from Mexico’s Navy and Army. Authorities activated their…
Scroll to Top