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. Despite predictions of 0.0% growth, the economy expanded by 0.2% quarter-on-quarter, slightly higher than expected. This growth was attributed to a downturn in the primary sector, which was partially offset by growth in services.
On a yearly basis, however, Mexico’s economy grew at a slower rate of 1.6%, below the expected growth of 2.1%. Chief Latin America Economist at Pantheon Macroeconomics, Andres Abadia, noted that this deceleration in economic growth was influenced by various challenges such as tighter financial conditions, difficult external conditions, and increased infrastructure spending. Despite this slowdown, Mexico’s economy has now expanded for the tenth consecutive quarter. Abadia mentioned that while the growth momentum appears sluggish compared to recent trends, he believes that it will pick up again in future quarters as external factors and reduced financial conditions begin to ease.