Non-Mexican Beauty, Highway Blockades & Tepid Growth
Mexico Decoded’s weekly briefing makes sense of the news that matters
1. Economic Deceleration Becomes Hard to Ignore
Preliminary figures show Mexico’s GDP contracted 0.3% in the third quarter. The slowdown reflects the completion of major public infrastructure projects in construction and weaker investment in the automotive sector.
Decoded:
FDI is increasing, but it accounts for only about 10% of total investment; the core reason Mexico’s economy is not growing is insufficient public investment — because fiscal resources are limited — and weak private investment, as domestic firms are far less optimistic than foreign investors.
2. Farm Workers & Truckers Launch National Blockade
Farmworkers and transport unions blockaded major roads and highways across several states, demanding that grain products be excluded from USMCA negotiations, that highway insecurity be addressed, and that a dedicated agricultural development bank be created.
Decoded:
Talks with the government previously collapsed over a proposed water bill. The reform would overhaul water rights, which under the current law can be monopolized for decades, but farmers argue they should be able to inherit public water concessions to their children.
3. Mexico’s Chinese Wall Shows Cracks
Mexico’s industrial policy has leaned heavily on selective tariffs against Asian imports, targeting goods the government believes can be domestically produced. But as new numbers reveal a slowdown in economic activity, parts of the business community are pushing the government to pause or recalibrate the tariff strategy.
Decoded:
It’s a revolt against industrial policy. Business leaders would rather rely on cheap imports from China and other Asian countries than put in the work to re-build the country’s industrial base and produce themselves.
4. Foreign Direct Investment Hits Record Pace
Data from Mexico’s Economy Ministry shows that foreign direct investment (FDI) in 2025 is on track to break records, reaching a cumulative $41 billion USD up to the third quarter.
Decoded:
The uptick is driven by new investment and a rebound in intra-company loans. Compared to the same period last year, FDI growth is three times higher.
5. Corruption in Mexico’s Miss Universe Win
Mexico won this year’s Miss Universe pageant. The problem? Mexico’s representative was a white woman with green eyes.
Decoded:
Second problem? The winner’s father, a senior executive at Mexico’s state-owned oil company, has business ties to the pageant’s president. One judge even resigned in protest, arguing there was pressure behind the win.