Economy & Business - October 2026

Despite Mexico’s plans to continue cutting the fiscal deficit next year, the pace of the reduction is proving slower than the government had initially promised as it struggles to shrink the massive budget overhang it inherited from the previous administration. The 2027 economic package that the administration of President Claudia Sheinbaum sent to congress on 8 September is aiming to shave just 0.2 percentage points off the deficit, to 3.9% of GDP. While that is down from the 4.1% projected for 2026, it is significantly higher than the reduction to 3.5% of GDP in 2027 that the government had proposed in April.