On Monday, according to a Reuters poll, Mexico’s economy continued to grow at a weak rate in the first quarter. The median estimate from 10 financial institutions was that the gross domestic product (GDP) grew by 0.1% in the quarter. However, this growth was lower than expected and marked the lowest rate since the third quarter of 2021, according to seasonally adjusted figures.
If confirmed, this would mark the 10th consecutive quarter of economic growth for Latin America’s second-largest economy. Despite this, GDP is expected to have grown by only 2.1% at an annual rate, below the 2.5% growth registered in the previous quarter. This indicates that Mexico’s economy has been showing sluggish growth for some time now.
The weak growth can be attributed to declines in manufacturing and agriculture, although the services sector was able to partially offset these losses. This trend has been seen in previous quarters as well, with Mexico’s economy showing slow growth despite facing several challenges. However, despite these difficulties, Mexico’s economy has managed to maintain its streak of growth albeit at a slower pace than before.
On Tuesday, Mexico’s statistics agency INEGI is set to publish GDP growth data for the first quarter of 2024. It will be interesting to see whether this data confirms or contradicts the estimates made by Reuters and financial institutions earlier this week.
Overall, while Mexico’s economy continues to grow at a weak rate, it remains resilient and has managed to maintain a streak of growth despite facing several challenges. As such, it will be important for policymakers and investors alike to closely monitor any changes in economic conditions and adjust their strategies accordingly if necessary.
