Rice University’s Baker Institute for Foreign Policy has released its Mexico Country Outlook 2026 report, and researchers found that things are starting to appear grim for the country.

The report, in great detail, examines Mexico’s relationship with the U.S. across economics, politics, and social issues. It found that Mexico’s economy is not growing, yet the country has continued a series of welfare programs that are proving difficult to maintain and are draining the budget.

During a panel discussion on Thursday, Tony Payan, director of the Center for the United States and Mexico at the Baker Institute, said he sees red flags in Mexico’s democracy, finances, and approach to organized criminal activity.

In this episode of Border Report Live, El Paso correspondent Julian Resendiz delves into the report released this week.