Weekly Report - 10 September 2026 (WR-26-36)

Mexico’s finance ministry (SHCP) presented the 2027 economic package to congress on 8 September. The package foresees a narrowing of the fiscal deficit – a key objective of President Claudia Sheinbaum’s government – to 3.9% of GDP from 4.1% projected for 2026. While this is down from the gaping deficit Sheinbaum inherited from her predecessor, Andrés Manuel López Obrador (2018-2024), the pace of deficit reduction is proving to be far slower than her government had initially envisaged. This perhaps reflects the Sheinbaum administration’s reluctance to cut funding for social welfare programmes, the cornerstone of the political project of the ruling left-wing Movimiento Regeneración Nacional (Morena), as well as continued public spending on key infrastructure programmes.