Mexico: Revised GDP growth data confirms acceleration in Q1
May 20, 2016
More complete data confirmed that Mexico’s GDP growth accelerated at the beginning of the year. According to a second release made by the National Statistical Institute (INEGI), GDP increased 2.6% year-on-year in the first quarter, which was virtually unchanged from the 2.7% increase published in a preliminary estimate released by INEGI on 29 April. Q1’s result came in above a 2.4% increase in the fourth quarter and was in line with market expectations.
The revised data confirmed that agriculture and industry were the main drivers behind Q1’s acceleration. Agriculture increased 3.1% annually in Q1 (previously reported: +3.0% year-on-year), which swung from a 1.1% contraction in Q4. Meanwhile, growth in the industrial sector was revised down in Q1 from a preliminary 0.7% to 0.4%. Nonetheless, Q1’s expansion in industry still represented an acceleration over the 0.2% increase tallied in Q4. Growth in services continued to show robust growth and the reading was not revised: the sector maintained Q4’s healthy 3.7% growth rate in Q1.
Looking at seasonally-adjusted quarter-on-quarter data, Mexico’s GDP expanded 0.8% in Q1, which was a faster expansion over the 0.6% rise registered in the last quarter of 2015.
Author: Ricardo Aceves, Senior Economist