Mexico city at goldenhour

Mexico GDP Q1 2023

Mexico: GDP growth beats expectations in Q1

According to a preliminary reading, GDP growth accelerated to 1.1% on a seasonally adjusted quarter-on-quarter basis in the first quarter, from 0.5% in the fourth quarter. Q1’s reading surprised markets to the upside.

The reading was underpinned by the services and industrial sectors, which expanded 1.5% and 0.7% respectively. Services activity was likely aided by falling inflation, strong remittances, wage gains and a lower unemployment rate, while industrial production should have been boosted by rising vehicle production amid a fading chip shortage. In contrast, the primary sector declined 3.2%.

On an annual basis, economic growth waned notably to 3.6% in Q1, compared to the previous period’s 3.7% expansion.

Regarding the outlook, Itaú Unibanco analysts said:

“We increased our GDP growth forecast for this year to 2.4% (compared with our previous scenario of 1.8%) given a stronger-than-expected 1Q23. Nonetheless, we still expect sequential GDP to slow down in the last three quarters of the year, dragged down by a softer U.S. economy and tight monetary policy stance.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen