Mexico GDP Grows 0.7% in Q2 Led by Services, Industry

Mexico's economy experienced a stronger-than-expected growth of 0.7% in the second quarter of 2025, driven primarily by robust performances in the services and industrial sectors, which grew 0.7% and 0.8% respectively, offsetting a 1.3% contraction in primary activities such as farming and mining. This quarterly growth surpassed market forecasts and marked a recovery following a contraction in late 2024, with year-on-year GDP growth recorded at 0.1% to 1.2% depending on the source. Key services contributing to this growth included trade, transportation, and tourism, while manufacturing and construction led industrial gains, highlighting Mexico's improving production capacity and infrastructure. Despite these positive trends, analysts caution that risks remain, particularly related to potential U.S. tariff enforcement that could hinder Mexico's economic momentum. Regionally, the state of Sinaloa emerged as a standout performer with a 7.0% quarterly increase, fueled by agriculture, manufacturing, exports, and infrastructure investments that have attracted foreign firms and boosted competitiveness. Overall, Mexico appears to be on a stable recovery path, though challenges remain amid global economic uncertainties.