According to preliminary estimates from Mexico’s national statistics agency INEGI, the country’s economy performed better than expected in the first quarter of the year compared to the previous three months. The economy experienced a 0.2% growth in gross domestic product (GDP) on a quarter-on-quarter basis, slightly exceeding the 0.0% that economists had predicted. This growth was primarily driven by an increase in services, although there was a decline in the primary sector.
On a yearly basis, Mexico’s economy slowed down, expanding by only 1.6% compared to the same period last year. This growth rate was lower than the 2.5% growth seen in the previous quarter and below the expected 2.1% growth. Despite this slowdown, Mexico’s economy has now grown for the tenth consecutive quarter, with Chief Latin America Economist at Pantheon Macroeconomics, Andres Abadia noting that while there is still growth momentum, it appears to be weaker compared to recent trends.
Abadia attributed this slowdown to various challenges including tighter financial conditions, difficult external conditions, and increased infrastructure spending. These factors contributed to the overall deceleration of economic growth in the first quarter. However, Abadia also noted that despite these challenges, Mexico remains on a path of expansion with continued GDP growth and increased services activity driving this momentum.
In conclusion, while Mexico’s economy faced challenges in the first quarter of this year compared to recent trends and expectations
