The Mexican economy surpassed expectations in the first quarter of the year, with a growth rate of 0.2% on a quarter-on-quarter basis, compared to the predicted 0.0%. This was mainly driven by an increase in services, despite a decline in the primary sector. However, on a yearly basis, Mexico’s economy grew at a slower pace than expected, expanding by only 1.6%, compared to the same period last year.
Chief Latin America Economist at Pantheon Macroeconomics, Andres Abadia attributed this slowdown to several challenges including tighter financial conditions and difficult external conditions. Additionally, increased infrastructure spending contributed to the overall deceleration of economic growth in the first quarter. Despite this slowdown, Mexico’s economy has sustained its growth momentum for ten consecutive quarters.
Abadia noted that while there is still growth momentum, it appears weaker compared to recent trends. The figures indicate that Mexico’s economic growth faced challenges in the first quarter but remained on a path of expansion.