{"id":85089,"date":"2025-07-23T05:15:15","date_gmt":"2025-07-23T05:15:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/85089\/"},"modified":"2025-07-23T05:15:15","modified_gmt":"2025-07-23T05:15:15","slug":"services-sector-decline-drags-mexicos-economy-in-may","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/85089\/","title":{"rendered":"Services sector decline drags Mexico’s economy in May"},"content":{"rendered":"

Mexico\u2019s economy recorded 0% growth in May compared to the previous month and expanded just 0.4% in annual terms, according to seasonally-adjusted data published by the national statistics agency INEGI<\/a> on Tuesday.<\/p>\n

It was the second-worst month-over-month result for the Mexican economy this year after a 0.2% contraction in March.<\/p>\n

\n

En mayo 2025, y con cifras desestacionalizadas, el Indicador Global de la Actividad Econ\u00f3mica #IGAE<\/a> present\u00f3 las siguientes variaciones:
\u2194\ufe0f 0.0% mensual
\u2b06\ufe0f 0.4% anual<\/p>\n

Por componente, las variaciones mensuales fueron:
\u2b06\ufe0f 3.6% primarias
\u2b06\ufe0f 0.6% secundarias
\u2b07\ufe0f-0.4% terciarias<\/p>\n

\ud83d\udcc4\u2026 pic.twitter.com\/pG8bVvbVvR<\/a><\/p>\n

\u2014 INEGI INFORMA (@INEGI_INFORMA) July 22, 2025<\/a><\/p>\n<\/blockquote>\n

U.S. tariffs on various imports from Mexico, including steel, aluminum and vehicles, are weighing on the economy and creating uncertainty for investors.<\/p>\n

U.S. President Donald Trump recently doubled the duty on steel and aluminum to 50%<\/a>, and earlier this month informed President Claudia Sheinbaum<\/a> that on Aug. 1, he would impose a 30% tariff on \u201cMexican products sent into the United States, separate from all Sectoral Tariffs.\u201d<\/p>\n

The publication of the growth data for May comes four days after INEGI released preliminary data<\/a> showing that the Mexican economy grew 0.2% in June compared to the previous month and 1.3% in annual terms.<\/p>\n

Services sector contracts compared to April\u00a0\u00a0<\/strong><\/p>\n

INEGI\u2019s data shows that Mexico\u2019s tertiary or services sector contracted 0.4% in May compared to the previous month. Within that sector, the cultural and sporting services industry recorded the largest contraction, shrinking 3.4% in the space of a month.<\/p>\n

Valeria Moy, an economist and director of the Mexican Institute for Competitiveness, said on X<\/a> that the 0% month-over-month growth in May is due to the decline in the services sector, \u201cwhich is precisely where economic activity is concentrated.\u201d<\/p>\n

Mexico\u2019s primary sector, which includes farming and fishing, grew 3.6% in May compared to April, while the secondary sector expanded 0.6%.<\/p>\n

Within the secondary sector, the construction industry grew 2.8% on a month-over-month basis, while manufacturing output increased just 0.1%.<\/p>\n

The mining industry, which is also part of the secondary sector, declined 1.1% in May, while the electricity, water and gas industry grew 0.4%.<\/p>\n

Secondary sector shrinks in annual terms, primary sector grows more than 5%\u00a0\u00a0<\/strong><\/p>\n

INEGI reported that the secondary sector contracted 0.4% in May compared to the same month of last year.<\/p>\n

The mining (-8.4%), electricity\/water\/gas (-3.8%) and construction (-1%) industries all declined in annual terms.<\/p>\n

The manufacturing industry grew 1.4% compared to May 2024.<\/p>\n

The primary sector grew 5.4% annually in May while the services sector expanded 0.6%.<\/p>\n

Annual growth below 1% in first half of 2025, says analyst\u00a0<\/strong><\/p>\n

Taking the latest data from INEGI into account, the director of economic analysis at Banco Base calculated that the Mexican economy grew around 0.72% in the second quarter of 2025 compared to the first three months of the year, and 1.11% in annual terms.<\/p>\n

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World Bank forecasts 0.2% growth for Mexico, citing persistent global \u2018turbulence\u2019\u00a0<\/a><\/p>\n<\/blockquote>\n

In a post to X<\/a>, Gabriela Siller said that the data indicates that the Mexican economy grew 0.84% in annual terms in the first six months of 2025. That result, she said, is the lowest growth rate for the first half of any year since 2020, when the COVID-19 pandemic and associated restrictions ravaged the economy<\/a>.<\/p>\n

The International Monetary Fund is currently forecasting that the Mexican economy will contract 0.3% in 2025<\/a>, while the World Bank is predicting growth of 0.2%<\/a>.<\/p>\n

Mexico\u2019s Finance Ministry is more optimistic, forecasting growth in the range of 1.5%-2.3% in 2025.<\/p>\n

President Sheinbaum has rejected forecasts from international financial organizations, asserting that they don\u2019t take into account federal government efforts to stimulate the economy, including through its Plan M\u00e9xico initiative<\/a>.<\/p>\n

With reports from El Economista<\/a> and Bloomberg L\u00ednea<\/a><\/p>\n