Mexico budget to be presented on Monday afternoon: Sheinbaum

Mexico budget to be presented on Monday afternoon: Sheinbaum

Mexico's President Claudia Sheinbaum is set to present the country's budget on Monday afternoon, following a series of significant economic achievements and policy initiatives during her first year in office. The budget presentation comes amidst a backdrop of robust economic growth, record-low inflation, and substantial foreign direct investment.

According to her first-year report delivered on September 1, Sheinbaum highlighted that Mexico's economy grew by 1.2% in 2024, surpassing projections from international organizations. Inflation stood at 3.5% in July, the lowest level since early 2021, while the exchange rate remained below MX$19 per dollar. Public debt remained stable at around 50% of GDP, and foreign direct investment reached a record US$36 billion during the first half of 2025 [1].

The minimum wage increased by 12% in 2025, reaching MX$278.80 per day and MX$419.88 in the northern border region. This represents a cumulative increase of 135% in real terms since 2018. Additionally, the government introduced a labor reform that granted one million app-based workers access to social security and accident coverage [1].

Federal revenue reached MX$5.95 trillion by August 31, an increase of 8.5% from the same period last year and above the forecast in the Revenue Law. The administration allocated 2.3% of GDP to social programs, benefiting 32 million families, including 13 million seniors and 1.6 million people with disabilities [1].

Sheinbaum's industrial policy, under "Plan México," includes 15 economic development hubs, the Interoceanic Corridor, and 100 new industrial parks. She invited domestic businesses to increase investment in productive sectors [1].

The president also emphasized Mexico's strong position in trade relations with the United States, noting that the country maintains the lowest average tariff rates globally at 6.5%. She confirmed upcoming meetings with U.S. Secretary of State Marco Rubio and other international leaders to advance bilateral and multilateral agreements [1].

Legislatively, the administration enacted 19 constitutional amendments and 40 new laws in the past year. Key changes included the popular election of Supreme Court judges, incorporation of the National Guard into the Defense Ministry, recognition of Indigenous and Afro-Mexican communities as public law entities, and reversal of the 2013 energy reform to strengthen PEMEX and CFE [1].

Sheinbaum's security strategy reduced homicides by 25% in 11 months, averaging 22 fewer cases daily compared to September 2024. High-impact crimes declined by 20%, with vehicle theft with violence down 31% and femicides down 34% [1].

Infrastructure projects completed or underway include sections of the Tren Maya, multiple highways and bridges, and the rehabilitation of 68 bridges in Guerrero damaged by Hurricane John. Total investment in these projects amounts to MX$121.5 billion [1].

The upcoming budget presentation is expected to provide further insights into Mexico's economic trajectory and the government's plans to build on these achievements. Investors and financial professionals will be closely monitoring the details to gauge the country's fiscal health and future prospects.

References:

[1] https://mexicobusiness.news/finance/news/sheinbaum-highlights-economic-growth-fdi-record-first-report
[2] https://mexicobusiness.news/policyandeconomy/news/sheinbaum-celebrates-first-year-office-forecasts-growth
[3] https://mexiconewsdaily.com/politics/sheinbaum-rubio-announce-establishment-bilateral-security-group/