Mexico reports record Q1 FDI alongside sharply rising fiscal deficit

Mexico's government announced that foreign direct investment reached a record $23.591 billion in the first quarter of 2026, up 10.4 % from the previous year. The report highlighted a low unemployment rate of 2.5 %, the creation of 669 000 jobs and the strongest quarterly formal‑employment figures in the country's history. Inflation and interest rates continued to fall, the peso appreciated to 17.40 per dollar, and commodity prices in the basic basket fell 12 % in real terms.

At the same time, an analysis by the independent think‑tank México Evalúa showed the public‑finance deficit surged to 217 billion pesos in the first four months of 2026 – the second‑largest deficit of the century – marking a 151 % real increase over the same period a year earlier. The widening gap was attributed to lower tax revenues and higher compulsory spending, especially on pensions and debt‑service interest, which together accounted for over a third of total outlays.

The contrasting data underline a mixed economic picture: robust investment inflows and labor market gains coexist with a rapidly expanding fiscal shortfall that has prompted lower credit‑rating outlooks for the federal government.