The Bank of Mexico, known as Banxico, has revised its growth forecast for the country's Gross Domestic Product (GDP) to 1.6% for 2026, up from the previous estimate of 1.1%. This revision is based on stronger-than-anticipated economic performance in the last quarter of 2025, which exceeded earlier expectations. The improved forecast reflects an adjustment to the methodology, as Banxico notes that the better-than-expected GDP variation at the end of 2025 provides a larger base for growth calculations in 2026.

In its quarterly report for October to December, Banxico highlighted that while the projected economic activity dynamics remain similar to its previous outlook, the actual GDP performance in late 2025 has induced a positive arithmetic effect that contributes to the improved growth forecast. The central bank's adjustment suggests increased confidence in the resilience of the Mexican economy, even amid ongoing global economic challenges.

The revised forecast carries significant implications for economic policy and investment sentiment in Mexico, as growth above 1.5% can influence fiscal and monetary decisions. Stakeholders in various sectors will likely leverage this optimistic outlook to plan for the coming years, anticipating a stronger economic environment that may boost consumer spending and investment opportunities across the country.