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Mexico’s public debt increased from MXN 10.5 trillion in 2018 to MXN 18.9 trillion in 2025, representing an 80% increase in just seven years. Official estimates suggest it could reach MXN 21.8 trillion by the end of 2027. While borrowing is a common financing tool for governments, investors pay particularly close attention when public debt grows at a faster pace than the economy. Beyond the total amount of public debt, one of the most important indicators is its relationship

On May 20, 2026, the credit rating agency Moody's downgraded Mexico's sovereign rating to its lowest level of "investment grade", right above "junk" status. Only a few days earlier, Standard & Poor’s Global Ratings (S&P) had revised its outlook on Mexico from "stable" to "negative". While this might sound like a dry topic meant only for Wall Street and economists, the reality is far closer to home. This kind of financial warning can directly trigger a drop in the Mexican peso