Mexico’s Economy Surprises with Better-than-Expected Growth in Q1 Despite Predicted Slowdown

Mexico’s economy experienced better-than-expected growth in the first quarter of the year, despite predictions of a slowdown. The country’s economy expanded by 0.2% quarter-on-quarter, slightly higher than the 0.0% that economists had forecasted. This growth was primarily due 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 below the expected growth of 2.1%. Chief Latin America Economist at Pantheon Macroeconomics, Andres Abadia, noted that this deceleration in economic growth in Q1 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 the growth momentum appears sluggish compared to recent trends. The challenges faced by the economy have contributed to the weaker performance in Q1.