Mexico Skirts Recession in First Quarter Despite Trump Uncertainty
- Mexico's economy grew 0.8% annually and 0.2% quarterly in the first quarter of 2025, narrowly avoiding a technical recession.
- This expansion came after the economy shrank by 0.6% in the final quarter of 2024 and unfolded amid ongoing uncertainty linked to US trade tariffs and protectionist measures.
- Agriculture surged 7.2% annually and 8.1% quarterly, driving growth despite a 0.7% annual industry contraction and zero growth in services.
- Foreign investment hit a record $21.4 billion, rising 5.4% from 2024 despite tariff threats, while inflation breached 4.22%, surpassing the central bank's target.
- Analysts and institutions lowered growth forecasts amid structural industry declines and US tariffs, signaling potential economic contraction later in 2025.
15 Articles
15 Articles
Agricultural Surge Saves Mexico from Technical Recession Despite Factory Decline in Q1 2025
Mexico’s National Institute of Statistics and Geography released revised data showing the economy grew 0.8% annually in the first quarter of 2025. The country narrowly avoided a technical recession after expanding 0.2% quarter-over-quarter, following a 0.6% contraction in late 2024. Agriculture drove the unexpected growth with a remarkable 7.2% annual increase and 8.1% quarterly surge. […]
Confirmed ‘Panzazo’: Mexico’s GDP Grows 0.2% in the First Quarter and Avoids Recession
The ‘pance’ was confirmed: Mexico’s economy grew 0.2 percent in the first quarter of 2025, thus avoiding the so-called ‘technical recession’, reported the National Institute of Statistics and Geography (Inegi) on Thursday, May 22. The 0.2 percent figure is the same as the timely estimate published a month ago, although the Institute did make some adjustments: The growth of primary activities (related to the field) was adjusted from 8.1 to 7.9 pe…
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