Mexico Economic Outlook
May 17, 2016Mexico’s economy was more resilient to external headwinds at the beginning of the year. Preliminary data show that GDP growth picked up from 2.5% year-on-year in Q4 2015 to 2.7% in Q1. The result, which exceeded expectations, was driven by faster growth in all three of the main sectors of the economy. Agriculture and services expanded robustly in Q1, while growth in the industrial sector was surprisingly faster, considering cutbacks in oil production and a slowdown in the U.S. economy in Q1. Moreover, manufacturing gauges in April suggest that the sector is off to a positive start to Q2. On a negative note, consumer confidence slipped further in April, suggesting that sentiment is losing traction, despite strong consumption fundamentals. In response to Moody’s warning in March that it could decide to downgrade Mexico’s rating, the government announced new expenditure cuts together with the guidelines for next year’s budget.
Mexico Economy Data
5 years of Mexico economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.15||-0.49 %||May 25|
|Exchange Rate||18.48||0.02 %||May 25|
|Stock Market||45,711||0.47 %||May 25|
Mexico Economic Growth
May 17, 2016Economic growth will be supported by strong private consumption this year. However, Mexico is facing a painful adjustment to low oil prices and weak demand for its manufactured exports. Analysts project Mexico’s 2016 GDP to be just a tick below last year’s 2.5% at 2.4%, which is unchanged from last month’s forecast. For 2017, growth is seen picking up to 2.8%.
Mexico Economic News
May 20, 2016
More complete data confirmed that Mexico’s GDP growth accelerated at the beginning of the year.
May 9, 2016
In April, consumer prices fell 0.32%, which was faster than the 0.26% decrease the markets had expected.
May 6, 2016
Consumer sentiment fell in April, losing part of the ground gained in the previous month.
May 5, 2016
On 5 May, the Central Bank announced that it had decided to maintain the overnight interest rate at 3.75%, which was on par with market expectations.
May 2, 2016
After an impressive start to the year, Mexico’s manufacturing sector heads into the second quarter on solid footing.