Insecurity and bad weather batter Sinaloa’s economy in Q1 2026
Among Mexico's 32 federal entities, 20 recorded sequential contractions in the first quarter of the year, but Sinaloa's economic result was easily the worst. The post Insecurity and bad weather batter Sinaloa’s economy in Q1 2026 appeared first on Mexico News Daily
Sinaloa's economy suffered a 4.5% contraction in the first quarter of 2026 due to insecurity and adverse weather, according to the national statistics agency INEGI. This was the worst first quarter performance for the northern state since 2021. Economic analyst Adriana García stated that violence has deterred investment and discouraged new business openings.
The primary cause of insecurity in Sinaloa is the ongoing conflict between rival factions Los Chapitos and Los Mayos, both factions of the powerful Sinaloa Cartel. The feud has resulted in over 2,000 deaths and thousands of disappearances since 2024. The state's economy also saw a 1.2% annual contraction, with employment losses in the formal sector and a growing informal economy.
Agricultural production, particularly in beef and tomatoes, has also declined due to drought conditions and high prices.
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