Breaking News: Telecommunications Sector Faces Slowdown in 1T-2025 Amid Global Economic Uncertainty
MEXICO CITY, May 2025 – The telecommunications sector in Mexico has begun 2025 with a notable slowdown, recording a mere 1.2% growth in income during the first quarter. This marks the slowest growth since 2021, raising concerns about the sector’s future trajectory. The news comes as the global economic outlook dims, with the Organization for Economic Cooperation and Development (OECD) cutting its growth forecasts for 2025 and 2026.
Sector Performance in 1T-2025
Despite the sector’s sluggish start, the slowdown was slightly better than the overall economic growth of 0.8% in the same period. The mobile segment managed a 1.4% growth, driven by a significant 6.6% drop in equipment sales. Pay TV subscriptions also declined by 6.8%, contributing to a 0.6% fall in this segment.
Fixed Segment Takes a Hit
The fixed telecommunications segment was the hardest hit, with a 3.1% growth—2.6 percentage points lower than the previous quarter. This decline was primarily due to a decrease in fixed telephone line subscriptions.
Global Economic Uncertainty
The OECD recently revised its global economic growth forecasts downward, predicting a growth of 3.1% in 2025 and 3.0% in 2026, citing persistent commercial policy uncertainties, rising protectionism, and geopolitical tensions. For Mexico, the outlook is particularly grim, with the OECD projecting a mere 0.4% growth in 2025, followed by a modest recovery to 1.1% in 2026.
Expert Insights
Specialists in private sector economics surveyed by the Bank of Mexico in May expect even more moderate growth, forecasting just 0.2% growth for 2025 and a 1.4% increase by 2026. This context of economic slowdown has set a challenging tone for the telecommunications sector at the start of 2025.
Looking Ahead
The telecommunications sector in Mexico is navigating a complex economic environment, marked by high uncertainty and regulatory instability. The future depends on the sector’s ability to adapt and innovate in the face of these challenges. Stay tuned to archyde.com for the latest updates and in-depth analysis on how these developments will shape the telecommunications landscape.
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