Mexico’s economy grew 3.3% in July, the strongest monthly result of 2026

Mexico's economy expanded at a robust 3.3% annual rate in July, marking the strongest growth of any month so far in 2026, according to the national statistics agency INEGI, which released the data a month after publishing a 1.9% growth figure for the second quarter of 2026. The previous quarter saw a mere 0.4% annual growth. July also saw a 0.8% month-over-month expansion, the second-best result this year after a 1.5% rise in April.

In contrast, Mexico's economy was flat in June at 0% growth and contracted 0.3% in May compared to April. From January to July 2026, Mexico's economy has grown by 1.5% annually, as per INEGI. Andrés Abadía, chief Latin America economist at Pantheon Economics, noted that the July growth figures put the third quarter in a "much stronger position than expected," but cautioned that "one month of strong results is not enough to predict a sustained recovery."

The services sector led the growth in July, expanding by 4% annually, while the secondary sector, which includes manufacturing, construction, mining, and electricity generation, grew by 2.4%. The primary sector, which comprises agriculture and fishing, saw a year-over-year decline of 0.6% in July. The month-over-month performance of the tertiary sector was 1.2%, while the secondary sector expanded by 0.5%.

The primary sector contracted by 1.1% compared to June. On Tuesday, the Bank of Mexico reported a USD:MXN exchange rate of 18.06, with the Mexican peso depreciating 5.9% this month after ending August at 16.99 to the US dollar. Mexico's annual headline inflation rate for the first half of September stood at 3.42%, up from 3.26% in August.

Mexico's export revenue reached a record US $549.4 billion in the first eight months of 2026, representing a 29.3% annual increase. The Bank of Mexico's key interest rate remains at 6.50%.