Mexico’s economy experienced better-than-expected growth in the first quarter of 2021, despite a slowdown in the primary sector and various challenges. The gross domestic product (GDP) expanded by 0.2% quarter-on-quarter, slightly higher than economists had predicted, but still lower than the previous year’s growth rate of 1.6%. Andres Abadia, Chief Latin America Economist at Pantheon Macroeconomics, attributed the slowdown to tighter financial conditions, difficult external conditions, and increased infrastructure spending.
The primary sector saw a decline in the first quarter, but this was offset by an increase in services. Despite these challenges, Mexico’s economy has now expanded for ten consecutive quarters. Abadia noted that the economic growth trend continues to decelerate, with factors like pre-election support to households not being enough to counterbalance the challenges faced by the economy. Overall, the data suggests a mixed performance for Mexico’s economy in the first quarter of 2021.
