Mexico: Economy improves in first quarter but growth is still weak
May 23, 2014
In the first quarter, GDP increased 1.8% over the same quarter last year, which marked an improvement compared to the tepid 0.7% expansion registered in the fourth quarter. The reading, however, undershot the 2.1% increase the markets had expected and fell just shy of the 1.9% expansion LatinFocus panelists had projected last month.
The acceleration in Q1 reflected a broad-based improvement in the main economic sectors. Agriculture bounced back from a 0.2% contraction in the fourth quarter to a strong 4.9% expansion in the first. Industry increased 1.6% in Q1, which contrasted the 0.4% decrease registered in Q4. Notable was an astounding 4.3% surge in manufacturing, which more than doubled the 1.9% rise registered in Q4. Meanwhile, the services sector grew 1.8% over the same quarter last year, which followed the 1.3% expansion tallied in the fourth quarter.
A quarter-on-quarter comparison showed that GDP grew a seasonally-adjusted 0.3% in Q1, which was up from the 0.1% increase observed in Q4.
Author: Ricardo Aceves, Senior Economist