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.
However, on a yearly basis, Mexico’s economy expanded by only 1.6%, which was a slowdown from the 2.5% growth seen in the previous quarter and below the expected growth of 2.1%. Chief Latin America Economist at Pantheon Macroeconomics, Andres Abadia, 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.
Despite the slowdown, Mexico’s economy has now expanded for the tenth consecutive quarter. Abadia mentioned that the growth momentum appears sluggish compared to recent trends. The challenges faced by the economy, including external factors and reduced financial conditions, have contributed to the weaker performance in the first quarter of the year.
