Might 26 (Reuters) – Mexico’s economic system grew for the sixth quarter in a row within the first quarter, information from Latin America’s second-largest economic system confirmed on Friday, with progress consistent with market expectations.

Gross home product (GDP) elevated 1.0% within the interval from the earlier three months, statistics company INEGI stated, matching forecasts from economists in a Reuters ballot.

The determine, nonetheless, got here in barely under preliminary estimates disclosed by INEGI a month in the past, when the statistics company stated GDP had doubtless elevated 1.1% within the interval on a sequential foundation.

Economists had already dubbed the preliminary first quarter information as “strong,” though famous a slowdown within the U.S. economic system and tight financial coverage would most likely soften Mexico’s efficiency within the coming quarters.

“Total, these numbers verify an honest begin to the 12 months,” Pantheon Macroeconomics’ chief economist for Latin America, Andres Abadia, stated about Friday’s figures. “However sequential information is confirming a gradual deterioration in latest months.”

Further indicators launched by INEGI confirmed that financial exercise within the nation shrank 0.3% in March from the earlier month.

Abadia stated the “excellent news” was that fading progress momentum and falling inflation would make it simpler for the central financial institution to undertake a dovish tone quickly after pausing a virtually two-year rate-hike cycle earlier this month.

The quarterly GDP progress, in accordance with INEGI, was pushed by a 1.5% leap within the tertiary or service sector and a 0.6% enhance in secondary actions, which comprise manufacturing.

Main actions resembling farming, forestry, fishing and mining, nonetheless, shrunk by 2.8%.

In annual phrases, the company added, the economic system expanded 3.7% within the first three months of 2023 in comparison with a 12 months earlier. That was barely under the three.9% progress anticipated by the market and projected by final month’s preliminary information.

Reporting by Gabriel Araujo; modifying by Steven Grattan, Jason Neely and Conor Humphries

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