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flag Mexico’s economy grew 1.8% in 2025’s first half, avoiding recession, but faces slowing growth and U.S. tariff risks.

flag Mexico’s economy grew 1.8% in the first half of 2025, avoiding a recession, driven by strong exports and a resilient services sector, but growth is expected to slow to just 0.7% for the full year. flag The outlook remains uncertain due to U.S. tariff threats under USMCA, with non-compliant exports facing up to 30% tariffs unless a deal is reached by November. flag High interest rates, weak domestic demand, falling remittances, and stagnant investment hinder expansion. flag Mexico is pushing to boost its semiconductor industry to attract foreign investment and strengthen North American supply chains, despite challenges from political uncertainty and declining oil output.

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