Banxico Quarterly Report: Investment seen weak until at least H2 26 due to uncertainty around trade relations with the US

• Private consumption is expected to gradually increase its rate of growth. Investment is anticipated to remain weak at least until the second half of 2026, reflecting the uncertainty over the trade relationship with the United States and the upcoming USMCA review.
• 2026 GDP Growth forecast: 1.6%
• 2027 GDP Growth forecast: 2.0%.

Banxico's latest quarterly report indicates that investment in Mexico will remain weak until at least the second half of 2026 due to trade uncertainty with the U.S. This slower investment outlook, along with a projected GDP growth of 1.6% in 2026, suggests potential headwinds for the Mexican economy, which could influence monetary policy and currency strength in the region.