Mexico Q1 GDP fell 3.2% quarter‑over‑quarter SAAR, with real GDP rising only 0.1% YoY, reflecting a broad‑based sector contraction.
Bank of America notes an 8% drop in factor productivity over years and the IGPOSE index turning to contraction, signaling structural drift.
Banxico kept its policy rate at 6.50%; BofA expects cuts while the fiscal deficit remains near 5% of GDP to fund infrastructure projects.
BofA maintains its 2026 GDP growth forecast at 0.8% and warns that stimulus without reforms could tighten buffers and keep inflation sticky.