Mexico Annual GDP Growth Revised Up to 1.3% in Q1



The Mexican economy expanded 1.3 percent year-on-year in the first quarter of 2018, above a preliminary figure of 1.2 percent, following a 1.5 percent growth in the previous quarter and slightly below market expectations of 1.35 percent. It was the weakest growth rate since the last quarter of 2013, mainly due to industrial and services sector.

The services sector increased 2.0 percent, down from a 2.1 percent expansion in the preliminary estimate and below a 2.4 percent growth in the previous period. Output rose less for financial services and insurance (4.1 percent from 5.4 percent in Q4 2017); information and communication (3.0 percent from 3.9 percent) and wholesale trade (2.5 percent from 4.8 percent). Also, production fell for education (-0.8 percent from 1.2 percent) and cultural and sports activities (-0.1 percent from 3.2 percent) and dropped further for business services (-2.8 percent from -1.6 percent). On the other hand, faster growth was seen in real estate activities (1.3 percent from 0.7 percent); retail trade (3.2 percent from 2.1 percent); health and social activities (3.0 percent from 1.9 percent) and transportation (2.8 percent from 2.7 percent). 

Industrial activity shrank 0.8 percent, below a 1.1 percent contraction in the preliminary figure and following a 1.0 percent fall in the prior quarter. Mining contracted less (-6.1 percent from -8.8 percent) and manufacturing while output rebounded for construction (1.5 percent from -1.3 percent) and utilies (a flat reading from -0.6 percent). Meantime, manufacturing sector dropped (-0.2 percent from 1.8 percent).

The agricultural sector accelerated 5.4 percent, up from the preliminary estimate of a 5.3 percent and above a 4.3 percent expansion in the previous period. It was the strongest growth since the first quarter of 2014.

On a quarterly basis, the economy grew 1.3 percent, in line with preliminary figures, slowing from 1.5 percent expansion in the prior quarter.

Mexico Annual GDP Growth Revised Up to 1.3% in Q1


INEGI | Stefanie Moya | stefanie.moya@tradingeconomics.com
5/23/2018 1:52:14 PM