Mexico’s Economic Indicators and Future Outlook
The second week of December was marked by significant economic data to understand how Mexico’s economy will close out 2025 and what awaits in 2026.
Meanwhile, in the United States, the Federal Reserve (Fed) announced its much-anticipated decision on monetary policy.
Mexican Peso Strengthens Against the Dollar
On its last trading day of the week, Thursday, the Mexican peso advanced against the US dollar in negotiations.
Following an expected adjustment to the Federal Reserve’s (Fed) interest rate, the currency marked its best level in 17 months due to the weakening of the greenback.
The exchange rate ended Thursday’s session at 18.0354 units per dollar, compared to 18.1824 units on Wednesday, according to official data from the Bank of Mexico. This movement represented a gain of 14.7 centavos or 0.81 percent for the peso.
Thus, the local currency finished Thursday with its largest appreciation since August 22 when it advanced 0.92 percent. Year-to-date, the Mexican peso has appreciated 13.64 percent.
Mexican Stock Exchanges Show Strong Gains
Mexico’s value stock exchanges registered significant advances during Thursday’s trading before the holiday.
The S&P/BMV IPC, the leading index of the Mexican Stock Exchange (BMV), which groups the most traded local stocks, advanced 2.05% to 64,712.07 units, while the FTSE BIVA, of the Institutional Securities Exchange (Biva), gained 2.08% to 1,282.60.
Within the reference index, most values closed with gains. The shares of airport operators GAP and OMA led the rises, with 6.09% more at 467.57 pesos and 5.03% at 245 pesos, followed by conglomerate Orbia with 4.72% at 17.08 pesos.
Wall Street Performance
The major indices of Wall Street ended with losses in the last session of the week.
Investors showed concern over a potential AI bubble following warnings from Broadcom and Oracle, fueling fears.
The Dow Jones Industrial Average, composed of the shares of 30 industry giants, fell 0.51% to 48,458.05 units, while the S&P 500, of the most valuable companies, lost 1.07% to 6,827.41 points. The Nasdaq Composite dropped 1.69% to 23,195.17.
In weekly performances, the indices recorded mixed results; the Dow Jones gained 1.21% for the week and rose 13.81% for the year; the S&P 500 lost 0.57% for the week but gained 15.66% for the year. The Nasdaq fell 1.58% but is up 19.54% for the year.
Key Points to Watch
- US and Mexico Reach Agreement on Water Treaty
The US Department of Agriculture announced late Friday that it had reached an agreement with Mexico, which had failed to meet its obligations under a water-sharing treaty and prompted a threat from President Donald Trump to impose tariffs.
US authorities stated that the government led by President Claudia Sheinbaum had agreed to supply 250 million cubic meters of water starting the following week and catch up on the delay.
Liga MX Final: Tigres vs. Diablos Rojos
With a slight advantage after the IDA match on Thursday, Tigres from the Autonomous University of Nuevo León will face Diablos Rojos from Toluca in the highly anticipated final of the Apertura 2025 tournament on Sunday.
The RETURN MATCH of this final will take place on December 14 at Nemesio Diez Stadium, starting at 7:00 PM (local time).
In case of a draw, an additional 30-minute extra time will be played, and if the tie persists, it will be decided by penalties.
