According to preliminary estimates from Mexico’s national statistics agency INEGI, the country’s economy experienced better-than-expected growth in the first quarter of the year compared to the previous three months. The economy expanded by 0.2% quarter-on-quarter, slightly higher than the 0.0% that economists had predicted. This growth was attributed to a downturn in the primary sector, which was partially offset by growth in services.
On a yearly basis, Mexico’s economy expanded by 1.6%, which was a slowdown from the 2.5% growth seen in the previous quarter and below the expected growth of 2.1%. Despite this slowdown, Mexico’s economy has now expanded for the tenth consecutive quarter, according to Chief Latin America Economist at Pantheon Macroeconomics, Andres Abadia. However, he noted that the figures confirmed a deceleration in economic growth in Q1, influenced by various challenges such as tighter financial conditions, difficult external conditions, and increased infrastructure spending.
The challenges faced by the economy have contributed to the weaker performance in Q1 compared to recent trends. The primary sector’s decline was partially offset by services sector growth but still did not fully offset it. In addition to this challenge, tighter financial conditions and difficult external factors have also contributed to this weaker performance.
Overall, despite some positive aspects of Mexico’s first-quarter economic performance, there are still challenges that need to be addressed for sustained economic growth moving forward.
Mexico’s national statistics agency INEGI reported that although its economy experienced better-than-expected growth during Q1 compared with previous three months; it expanded by only 0.2% quarter-on-quarter instead of 0.0% as economists had predicted.
This yearly expansion was lower than what was seen in Q4 and below expectations for Q1.
Despite this slowdown in economic growth during Q1 due to challenges such as tighter financial conditions and difficult external factors