Economy Politics Country 2026-03-30T08:04:54+00:00

Mexico's economy suffers due to government policies, not Trump

The British magazine The Economist blames the Mexican government for the weak economy, pointing to a lack of investment and growth, not Donald Trump's policies. State control over the energy sector and pressure on business are worsening the situation.


Mexico's economy suffers due to government policies, not Trump

Mexico faces chronic crime and security problems caused by drug cartels. Additionally, the country has solidified its position as the main trading partner of the United States and has recorded growth in exports and foreign direct investment. Despite this, these factors have not translated into sustained economic dynamism. The British weekly magazine The Economist states that Mexico's economic problem is caused by the Mexican government itself, due to weak investment and growth, not by the policies of President Donald Trump. The British magazine warns that the country must liberalize its private sector, as the biggest problem for President Claudia Sheinbaum is weak investment and growth. The state has consolidated its control over the energy system, preventing access to much-needed private capital, even as public debt soars,” it adds. The credibility of Banxico is becoming a concern for the market. For the publication, instead of undertaking tax reforms, the Government has been extorting large companies to obtain more liquidity. “Since taking power in 2018, the ruling party, Morena, has pushed through constitutional reforms that actively undermine the economy,” states the British publication. “Now judges must be elected, which increases legal insecurity. According to the analysis, the growth of Gross Domestic Product (GDP) was a mere 0.8% in 2025, one of the lowest levels in years, while per capita income has fallen back to 2017 levels. Independent regulatory bodies have been weakened or directly abolished.