Mexico in May 2026: the most important developments in economy
Mexico's economy in May 2026 was shaped by a new trade agreement with the European Union and by pressure on its finances. The EU approved the deal in mid-May, and on May 22 and 23 the two sides signed a modernized agreement that renews tariff cuts and adds digital trade and sustainable development. The EU said it would remove remaining barriers as it reviews the deal, and reports noted the pact comes amid rising protectionism under the Trump administration. Separately, the EU was reported to be demanding a wage of 16 dollars an hour for some Mexican workers.
Credit agencies took a more cautious view of the country. On May 12, S&P Global Ratings revised its outlook for Mexico to negative, citing rising government debt and growth risks. On May 20 and 21, Moody's downgraded Mexico's credit rating to Baa3 as fiscal pressures mounted, and it also cut the ratings of banks in Mexico. Mexico lowered its 2026 growth forecast as investment faltered. President Claudia Sheinbaum shifted strategy to boost investment and renewed the anti-inflation and scarcity package on May 29. Carlos Slim backed her economic policy with a 5 billion dollar investment, and the digital bank Revolut said it had invested 167 million dollars in Mexico in less than half a year.
Relations with the United States stayed on the agenda. Mexico asked the US to be excluded from new tariffs announced by Trump, and Sheinbaum dismissed concerns that US accusations could put the USMCA trade agreement at risk. The first round of the USMCA review between the two countries concluded on May 29, covering autos, metals and security.
In business news, Canadian Pacific Kansas City sued Mexico over its passenger train project, arguing it violates the company's concession rights, and a fire at Pemex's Oaxaca refinery was extinguished with six people injured.
by WorldBrief & Maksim Micheliov | AI-generated summary
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