Mexico's economy shrank more than expected in the fourth quarter on a sequential basis, preliminary data from national statistics agency INEGI showed on Thursday, marking its first quarter-on-quarter contraction in over three years.

Mexico’s economy posted the first quarterly contraction since 2021, shrinking much more than expected on weaker domestic demand and uncertainty over tariffs by the US, the country’s top trade partner.

We don’t think it’s going to happen really,” she said during her daily morning news conference on Wednesday, just days before Trump’s threatened tariffs might begin. “And if it happens, we also have our plan.

President Claudia Sheinbaum brushed off a question as to whether Mexico is expecting US President Donald Trump to announce 25% tariffs on Mexican goods Feb. 1.

"We don't think it's going to happen," Sheinbaum said at her regular morning press conference. "And if it does happen, we also have our plan." In what Mexico sees as the unlikely event that the U.S. does implement tariffs against its largest trading partner on Feb.