Mexico Outlook 2026

ince the US military intervention in Venezuela, possible US operations in Mexico are no longer considered mere threats. Announcements from Washington are now also perceived in Mexico as a real political risk scenario, presenting President Sheinbaum with a foreign and domestic policy test. At the same time, the country is undergoing a period of profound institutional upheaval. Following the far-reaching weakening of constitutional structures in 2025, the announced electoral reform could also bring the legislature under the de facto control of the ruling party in 2026. If this plan is implemented, it would further substantially damage the already fragile democratic balance. At the same time, the security situation presents a mixed picture. While the number of registered homicides is declining, the number of disappearances continues to rise. At the same time, the population's sense of insecurity remains high.