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Weekly Report - 11 September 2025 (WR-25-36)

MEXICO: Budget deficit continues to plague Sheinbaum

Mexico’s finance ministry (SHCP) presented the government’s 2026 budget proposal to congress on 8 September. The proposal foresees solid growth next year and paints a rosy picture of Mexico’s economic position despite growing global challenges. However, the administration of President Claudia Sheinbaum is clearly continuing to struggle to contain the gaping budget deficit left by her predecessor, Andrés Manuel López Obrador (2018-2024). The proposal seeks to balance the challenge of introducing cuts to shrink this hole while making good on Sheinbaum’s promises to expand welfare programmes, a key driver of her high approval ratings.

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