The Mexican economy contracted 0.8% in the first quarter of 2026 compared to the previous three-month period, according to seasonally-adjusted preliminary data from the national statistics agency INEGI. This was the worst result for the Mexican economy in any first quarter since 2020 and was the largest sequential decline for any quarter since Q4 in 2024. The primary sector, which includes agriculture and fishing, saw the biggest decline, dropping 1.4% compared to Q4 2025. The secondary sector also saw a decline of 1.1%, while the tertiary or services sector declined 0.6%. This contraction is a blow for the federal government, which is aiming to grow the economy and attract more investment within the framework of its Plan México initiative. However, President Claudia Sheinbaum has argued that economic growth should not be the sole measure of well-being in Mexico due to factors including increases to the minimum wage and government's welfare and social programs.