Publications

Industrial overcapacity and the rise in trade remedy investigations underscore the importance of strong institutions. In the context of the USMCA review, these capabilities are essential to Mexico’s competitiveness and its credibility as a trading partner.

Latin America faces external headwinds, including less favorable global financial conditions and volatility stemming from global geopolitical tensions, compounded by the El Niño phenomenon. Despite these challenges, the region is expected to maintain steady growth of around 2.1% in 2027.

The global economy faces a complex outlook. The three most significant recent developments affecting economic activity are rising geopolitical tensions, the hawkish shift by the Fed and the ECB, and higher long-term interest rates. Private investment, driven by AI, and fiscal spending continue to support growth.

Data from the 2025 EIC indicate that Mexico has 1.88 million remittance-receiving households (4.7% of all households). Of these, 50.8% are headed by women, and 59.5% are located in rural or semi-rural areas. Despite the latter, these households have higher ownership rates for certain household assets.

The report analyzes the undervaluation issue of the RMB. Based on the MB and BEER models, it concludes that while there indeed exists periods of undervaluation, its degree of undervaluation is significantly lower than often claimed.

Global climate governance has moved from framework-building to delivery. Despite progress, implementation and ambition remain off track for Paris. COP31 should therefore be judged by whether commitments translate into measurable, financed, accountable and climate-consistent action.

Despite these gains, remittances declined by 6.5% in real terms in July, due to inflation and, primarily, the depreciation of the US dollar. Since reaching their peak in July 2022, remittances to Mexico have fallen by 24.8% in real terms, negatively affecting the income of recipient households over the past four years.