Mexico is a federal republic located in North America, known for its rich cultural heritage, significant economic role in Latin America, and complex political landscape. As of 2025, Mexico has a population of about 126 million people and a labor force of approximately 59 million, with an unemployment rate of 2.46%[3]. Economically, Mexico surprised analysts with 1.8% GDP growth in the first half of 2025, driven mainly by the services sector and manufacturing, though the overall outlook remains weak with expected growth slowing to around 0.7% for the year[1][2]. The energy sector, especially oil production, has been a drag on growth due to declining output and financial difficulties faced by the state-owned company Pemex[1].
Mexico is one of the few Latin American countries with an investment-grade rating and deep financial markets, closely integrated with the global economy[4]. However, challenges remain, including a large fiscal deficit, slow foreign direct investment, and a weakening regulatory environment that affects investor confidence[2][4]. Socially, Mexico has high income inequality and poverty rates, though poverty has decreased moderately from 41.9% in 2018 to 36.3% in 2022, partly due to wage increases and remittances from abroad[5]. Transparency and human rights concerns persist, with government actions reducing access to information and reports of unlawful surveillance[5].
Politically, Mexico is an electoral democracy with power alternating between parties since 2000, maintaining relatively high public trust in government institutions compared to OECD averages[7][8]. Its strategic relationship with the United States continues to shape its economic and diplomatic policies, but Mexico’s economic growth diverges from the stronger U.S. economy in 2025, limiting potential benefits from U.S. tax cuts and growth[2].
In summary, Mexico in 2025 is a nation balancing economic resilience and structural challenges, with ongoing social inequalities and governance issues amid a fragile but globally connected economy.