MEXICO'S ECONOMY: STUCK IN STAGNATION

Mexico's economy is virtually at a standstill. The Bank of Mexico has slashed its growth forecast for 2025 to just zero-point-one percent — and some analysts predict an outright contraction. This isn't new. As economist Robin Brooks points out, Mexico's real GDP was stagnant for years before the pandemic. A brief post-COVID bounce raised hopes, but the country has returned to its familiar pattern of economic stagnation. Several factors are driving this crisis: investment has collapsed amid uncertainty, consumption is weakening as remittances from the U.S. decline, and Trump's 25 percent tariffs continue to weigh on trade. President Sheinbaum has responded with "Plan México" — promising domestic investment, wage increases, and infrastructure projects. Mexico has also imposed its own 50 percent tariffs on China and other Asian nations to protect North American manufacturing. But without structural reforms, analysts warn Mexico risks falling further behind the United States in economic growth.