Mexico’s Economy Grows Weakly in First Quarter of 2024, Marking 10th Consecutive Quarter of Growth

On Monday, a Reuters poll revealed that Mexico’s economy grew at a weak rate in the first quarter of 2024. This was mainly due to a decrease in manufacturing and agriculture, although this was partially offset by growth in the services sector. The median estimate from 10 financial institutions was that the gross domestic product (GDP) grew by 0.1% in the quarter.

If confirmed, this would mark the 10th consecutive quarter of economic growth for Latin America’s second-largest economy. At an annual rate, GDP is expected to have grown by 2.1%, below the 2.5% growth registered in the previous quarter. Mexico’s statistics agency, INEGI, is set to publish GDP growth data for the first quarter of 2024 on Tuesday.

The weak growth can be attributed to declines in manufacturing and agriculture, although the services sector was able to partially offset these losses. This marks a continuation of the trend seen in previous quarters, with Mexico’s economy showing sluggish growth despite facing challenges such as inflation and political instability. However, despite these obstacles, Mexico has still managed to maintain a streak of growth albeit at a slower pace than previously anticipated.