Economy January 30, 2026

Mexico's GDP Climbs in Q4 2025, Sidesteps Technical Recession

Fourth-quarter expansion of 0.8% reverses prior contraction; agriculture leads sector gains

By Avery Klein
Mexico's GDP Climbs in Q4 2025, Sidesteps Technical Recession

Preliminary data from the national statistics institute show Mexico's economy grew 0.8% in the fourth quarter of 2025, outpacing consensus and reversing a contraction in Q3. On an annual basis Q4 GDP rose 1.6%, and the full-year expansion for 2025 was 0.5%, exceeding central bank and analyst forecasts. Agriculture was the strongest performing sector, with industry and services also recording gains.

Key Points

  • Mexico's economy expanded 0.8% in Q4 2025, surpassing the 0.6% median forecast and reversing the 0.3% contraction from Q3.
  • Year-over-year GDP rose 1.6% in Q4, above the 1.3% median estimate and improving from a revised 0.2% contraction in the previous quarter.
  • For 2025 overall, the economy grew 0.5%, exceeding Banxico's 0.3% projection and analyst estimates of 0.4%; agriculture led sectoral gains with a 5.3% increase.

Overview

Preliminary figures released by the national statistics institute on Friday indicate that Mexico's economy returned to growth in the fourth quarter of 2025, expanding 0.8% in the October-December period. The print topped the 0.6% median projection from economists surveyed by Bloomberg and reversed the 0.3% contraction recorded in the third quarter.

Quarterly and annual comparisons

On a year-over-year basis, gross domestic product increased 1.6% in Q4 compared with the same quarter in 2024. That result exceeded the 1.3% median estimate from the Bloomberg survey and represented an improvement from the revised 0.2% contraction reported for the previous quarter.

Full-year performance

For the calendar year 2025 as a whole, the Mexican economy grew 0.5%, marking the fourth straight year in which the pace of expansion has slowed. The annual outcome came in above the central bank Banxico's forecast of 0.3% and slightly higher than the 0.4% estimate put forward by analysts.

Sectors

The sectoral breakdown shows agriculture as the primary driver of the quarterly gain, with a 5.3% increase compared with Q4 2024. Industry and manufacturing together recorded growth of 0.4%, while the services sector expanded by 2% in the same year-over-year comparison.

Context and implications

The preliminary release indicates a near-term recovery in activity after a contraction in the prior quarter. The data provide a snapshot of where growth was concentrated in Q4, highlighting a notably strong agricultural performance alongside more modest gains in industry and services. The full-year outcome, while above forecasts, continues a multiyear pattern of slowing annual expansion.


Data note

These figures are preliminary estimates published by the national statistics institute on Friday.

Risks

  • The data are preliminary - revisions by the national statistics institute could alter the growth picture, affecting markets tied to GDP-sensitive sectors such as manufacturing and services.
  • Full-year growth of 0.5% continues a multi-year slowdown, which may weigh on investment decisions across capital-intensive sectors including industry and manufacturing.

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