Mexico reports economic growth amid high debt interest costs

Mexico’s economy expanded by 1.4% in the second quarter, nearly triple the OECD average of 0.5%. This growth marks the country’s strongest quarterly expansion since early 2022, following a 0.3% contraction in the first quarter. The rebound was driven in part by primary activities, which grew by 2.4%, and by manufacturing shifts as companies move production closer to the United States market.

However, Mexico faces significant fiscal pressure regarding its public debt. According to OECD data, Mexico allocates 10.9% of its public spending to net interest payments, the highest proportion among OECD nations. This equates to approximately $107.1 billion annually. By the end of the first half of 2026, Mexico’s total public sector debt reached 19.05 trillion pesos, or 51.5% of its GDP. While the United States spends more in absolute terms on interest, Mexico maintains the highest relative burden compared to its total public expenditure.