Background on Mexico’s Financial Situation
Mexico’s public debt, in its broadest measure, closed 2025 above the federal government’s estimate and at a historic level, according to information released by Mexico’s Secretariat of Finance and Public Credit (SHCP).
Debt Details
The broadest measure of debt, known as the Historical Stock of Financial Requirements of the Public Sector (SHRFSP), was recorded at 52.6% of the Gross Domestic Product (GDP) by the end of 2025. This figure surpassed the SHCP’s initial projection of 51.4% of GDP, eventually reaching 52.4% of GDP.
As a result, Mexico’s public debt amounted to 18 trillion, 577 billion pesos, marking a 2.7% annual growth amidst a year of fiscal consolidation.
Edgar Amador Zamora’s Statement
Amador Zamora, the head of SHCP, stated in a press conference that the broad debt remained on a sustainable path at 52.6% of GDP, preserving Mexico’s investment-grade rating with major credit agencies and maintaining favorable financing access conditions.
He emphasized that the crucial aspect is ensuring public liabilities do not grow beyond the country’s payment capacity, largely driven by economic growth.
“Investing in infrastructure and fostering more public investment that generates further investment will lead to increased public revenues, aiding in funding public expenditure,” he explained.
Fiscal Deficit Reduction
The primary challenge for public finances in the previous year was to decrease the fiscal deficit, which had reached a historic level of 5.7% of GDP in 2024.
In response, several public spending cuts were implemented alongside increased revenues to reduce the deficit in 2025.
Consequently, the SHRFSP stood at 1.52 trillion pesos, equivalent to 4.3% of GDP, which the finance ministry described as “one of the largest fiscal consolidation efforts observed in decades.”
However, this figure is higher than the initially anticipated 3.9% of GDP deficit due to lower-than-expected growth, trade tensions with the United States following Donald Trump’s arrival, and market volatility.
Government Spending and Income
During 2025, the government spent a total of 9.34 trillion pesos, representing a 1.8% annual decline.
Public revenue amounted to 7.975 trillion pesos, a 2.5% increase from the previous year.
Tax payments by taxpayers constituted the primary source of public income, contributing 5.3 trillion pesos to the government’s coffers—a 4.1% annual increase.
Key Questions and Answers
- What is the broadest measure of Mexico’s public debt? The broadest measure, SHRFSP, was 52.6% of GDP in 2025.
- How did Mexico’s public debt compare to the SHCP’s initial estimate? The actual debt surpassed the SHCP’s projected 51.4% of GDP, reaching 52.4% of GDP.
- What was the main challenge for public finances in 2025? The primary objective was to decrease the fiscal deficit, which had reached 5.7% of GDP in 2024.
- What factors contributed to the higher-than-expected fiscal deficit in 2025? Lower-than-anticipated growth, trade tensions with the United States, and market volatility led to the higher deficit.
- How did government spending and income perform in 2025? Government spending decreased by 1.8% annually, while public revenue increased by 2.5%, driven mainly by tax payments from taxpayers.
