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Mexico’s economy grows 0.2% in the first quarter of the year

Latin America’s second economy continued its good streak and reported slight growth, supported by dynamic trade and tourism

Crecimiento económico México 2024
Tourists and locals walk in Chapultepec Park, in Mexico City, in March 2024.SOPA Images (Getty Images)
Karina Suárez

Mexico’s economy registered slight growth in the first quarter of 2024 compared to the previous three months. Gross Domestic Product (GDP) grew 0.2% from January to March, driven by the services sector, which includes trade and tourism, according to the report published this Tuesday by the national statistics bureau Inegi. The quarterly growth implies a moderate acceleration compared to the fourth quarter of 2023, when GDP grew only 0.1%. Mexico’s GDP continued its good streak and the results exceeded analysts’ forecasts.

Domestically, the services sector recorded growth of 0.7% compared to the previous quarter, while the primary sector, which represents activities such as agriculture and fishing, fell 1.1%. Industrial activity also reported a decrease of 0.4%. Compared to the same period last year, seasonally adjusted figures show that the country’s GDP rose 2%, the lowest annual rate in the last nine quarters.

The director of Banco Base, Gabriela Siller, said on her social media accounts that despite being above expectations, Mexico’s GDP growth in the first quarter was low for an election year. “With this and high inflation, Mexico still has the risk of falling into stagflation,” she pointed out. The expectations of the Ministry of Finance outline that the Mexican economy will grow in a range of between 2.5% and 3.5% this year. According to this source, GDP growth will be a consequence of greater consumption, the completion of infrastructure works and growing external demand by the United States.

2023 was the third consecutive year in which the country’s economic growth exceeded the projections of market analysts at the beginning of the year.

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