Mexico’s economic flatlining hides a deeper transformation

MXPE Weekly Essentials ft. the Mexican government’s train wrecks, effects of car tariffs, and other highlights in Mexican politics, policy, and markets from the past week.

MXPE Weekly Essentials. Only the most important news in Mexican politics, policy, and markets from the past week.

A very quick recap before you dive into your fifth portion of recalentado. Our deep dives will return next week:

Uncharted Mexico: Economic flatline hides a transformation

A graph has been going around comparing how the US economy has rebounded with strength since the pandemic while the Mexican economy has flatlined. The poor performance since 2018 corresponds to the years in which the Morena party has been in power.

No doubt investment has slowed with the arrival of the ruling left-wing coalition, along with other factors like the return of Donald Trump which have also slowed production down.

But the raw figures hide a more complex story. One of economic transformations which are seeing the boom of certain regions and industries as others collapse.