During the second quarter of 2025, 18 federal entities in Mexico reported growth in their economic activity, 13 showed declines—including Oaxaca—and one remained unchanged, according to data from the National Institute of Statistics and Geography (INEGI).
The Quarterly Indicator of State Economic Activity (ITAEE) shows that the states with the most significant quarterly growth were:
followed by Sinaloa with a 2.8% drop amid ongoing violence in the state, Oaxaca with 2.3%, and Morelos, whose economic activity remained stagnant.
Mexico’s GDP for the April–June period increased 1.2% year-over-year. Thirteen states registered decreases in their economic activity during this period, while 18 advanced and one—Zacatecas—remained unchanged.
On an annual basis, Hidalgo (7.1%), Guanajuato (4.5%), Nuevo León (4.2%), Mexico City (3.7%), Michoacán (3.7%), and Tamaulipas (3.3%) reported the strongest growth.
Using original figures, Hidalgo grew 5.7% annually in the second quarter of 2025; Michoacán and Guanajuato grew 3.8% and 3.4%, respectively. Meanwhile, Campeche, Quintana Roo, and Tabasco contracted by 13.4%, 9.4%, and 7%, respectively.
An economic contraction is a general decline in economic activity within a country, state, or market, characterized by decreases in production, consumption, and investment. It typically follows a period of growth and is often associated with rising unemployment due to layoffs.
