Mexican economy grows 1.1% in May, boosted by agriculture and services

Mexico's economic activity expanded by 1.1% in May year-on-year, primarily fueled by robust growth in the primary and tertiary sectors, according to the National Institute of Statistics and Geography (Inegi).

The primary sector, encompassing agriculture and animal husbandry, surged by 7.6%, with agriculture alone increasing by 8.7% and animal exploitation by 5%. The tertiary sector, which includes wholesale and retail trade, services, and hospitality, grew by 1.7%. This expansion occurred despite a 0.7% contraction in the secondary sector, which comprises mining, manufacturing, energy, and construction.

Within the secondary sector, mining showed a notable increase of 3.9%. However, manufacturing experienced a decline of 1.5%, while the generation, transmission, and distribution of electricity contracted by 0.9%, and construction fell by 0.3%. In the tertiary sector, wholesale trade jumped 8.8%, and retail trade advanced 0.6% from the previous month. Healthcare and social assistance services also grew by 2.9%, alongside financial and insurance services at 2.6%.

On a seasonally adjusted basis, which smooths out calendar and cyclical effects, the Global Economic Activity Indicator (IGAE) rose by 2% in May compared to April. This monthly increase aligns with the 2.3% annual growth reported for April 2026, which was also supported by gains in the primary, secondary, and tertiary sectors.

Analysts suggest Mexico has avoided a technical recession, despite a generally weak performance throughout 2025. The country's economic growth has shown a progressive deceleration in recent years, with figures of 0.5% in 2025, 1.5% in 2024, 3.2% in 2023, 3.9% in 2022, and 6.1% in 2021, according to updated Inegi data.