Mexico’s economy shrank by 0.3% in the third quarter compared to the previous quarter, marking its first year-on-year decline since 2021. The contraction was largely driven by a drop in industrial activity and weak exports, according to preliminary data from the national statistics agency. Economists now expect the Bank of Mexico to proceed with a fresh interest-rate cut in the near term to stimulate growth. Domestic consumption held up better than manufacturing, but overall the data heightens recession risks in Latin America’s second-largest economy.