Banxico said Mexico's economy shrank 0.8% in Q1 2026, deeper than expected.
Board highlighted declines in industrial, manufacturing, services and private consumption, with manufacturing down nine months and auto sector lagging.
Banxico ended its 2024 monetary easing, keeping the policy rate unchanged and projecting inflation to hit 3% by Q2 2027.
Inflation was 4.45% in April 2026, with temporary farm‑product price pressures, while exports remained the main growth driver.