Eduardo Resende

Eduardo Resende asked if the expected softer economic activity in Mexico, particularly with USMCA discussions, poses any risk to the company's ongoing investment plans in the country. He also inquired about the anticipated evolution of tuitions and Laureate Education's capacity to pass through costs in Mexico this year.

Answer

Eilif Serck-Hanssen (CEO) clarified that the softer economic conditions in Mexico are a continuation from the second half of 2024, driven by election uncertainties and the trade situation. He expects 2026 GDP growth to be slightly better than 2025 (1.4%-1.5%), with an anticipated uptick in foreign direct investment and GDP growth (2-3%) post-USMCA clarity. He expects 2026 to continue the 2025 momentum of 3%-4% volume growth and pricing consistent with inflation, with potential upside in the second half of 2026.

Eduardo Resende asked about the potential impact of softer economic activity in Mexico, particularly with USMCA discussions, on the company's investment plans and how tuition and cost pass-through might evolve in Mexico this year.

Answer

CEO Eilif Serck-Hanssen clarified that Mexico's softer economic conditions are a continuation from late 2024, driven by election and trade uncertainties. He projected modest GDP growth for 2026, with an anticipated uptick in foreign investment and GDP growth post-USMCA clarity. He noted that 2025 saw 3-4% volume growth and pricing consistent with inflation, expecting similar momentum for 2026 with potential upside in the second half.