Mexican GDP Growth Confirmed at 0.8% in Q1

The Mexican economy advanced 0.8 percent on quarter in the first three months of 2016, higher than a 0.5 percent increase in the previous period and in line with preliminary estimates. The services sector recorded the lowest growth rate in a year while industrial production and agriculture rebounded.

Services sector was the main driver of growth advancing 0.8 percent, slightly lower than a 0.9 percent growth in the previous quarter but in line with preliminary estimates. Industrial production went up 1.2 percent, compared to a 0.8 percent decline in the previous period. It is the highest performance since the second quarter of 2014 although lower than 1.5 percent growth in earlier estimates. In addition, the agriculture sector surged 3.5 percent, rebounding from a 1.9 percent contraction in the previous quarter and posting the biggest gain in nine quarters, much higher than a preliminary 1.2 percent growth.

On a year-on-year basis, the GDP advanced at a downwardly revised 2.6 percent. 

The Mexican government lowered its GDP forecasts for 2016 by 0.4 percent to a range of 2.2 percent to 3.2 percent, mentioning a weaker industrial output in the US that could hurt Mexican exports.

Mexican GDP Growth Confirmed at 0.8% in Q1

INEGI | Francisco Caeiro |
5/20/2016 6:51:20 PM