S&P Sets Negative Outlook for Mexico

S&P changed Mexico’s sovereign outlook to negative while keeping BBB/BBB+ ratings, citing slow fiscal consolidation and rising debt.
General government deficit narrowed to 4.9% of GDP in 2025 (down from 5.2% in 2024) with a projected 4.8% in 2026.
GDP growth slowed to 0.8% in 2025, Q1 2026 growth 0.2% annualized, and S&P forecasts 1% growth for 2026 amid external headwinds.
Net general government debt projected to reach ~54% of GDP by 2029 (up from 49% in 2025) with interest payments >15% of revenue.