Mexico’s economy experienced a slight growth in the first quarter of the year, despite expectations of better-than-expected results. According to preliminary estimates from the national statistics agency INEGI, the country’s GDP expanded by 0.2% quarter-on-quarter, just slightly above the 0.0% economists had forecasted. This growth was mainly driven by an increase in services, but was offset by a decline in the primary sector.
On a yearly basis, Mexico’s economy grew by 1.6% compared to the same period last year. However, this rate was lower than the projected 2.1% growth rate and below the 2.5% posted in the previous quarter. Andres Abadia, Chief Latin America Economist at Pantheon Macroeconomics, stated that this confirms a deceleration in economic growth in Q1 due to various challenges such as tighter financial conditions and difficult external conditions.
Despite these challenges, Mexico’s economy has now seen expansion for ten consecutive quarters. Abadia mentioned that while there is still some growth momentum present, it appears sluggish compared to recent trends. The data also showed that increased infrastructure spending and pre-election support to households were not enough to offset these challenges faced by the economy.
In conclusion, Mexico’s economy showed mixed results in Q1 with positive quarterly growth but slower yearly growth compared to previous periods due to various challenges such as external conditions and financial constraints that have impacted its overall growth momentum