(Adds particulars in 1st paragraph, economist comments in paragraphs five-7)
Could 26 (Reuters) – Mexico’s economy grew for the sixth quarter in a row in the 1st quarter, information from Latin America’s second-biggest economy showed on Friday, with development in line with marketplace expectations.
Gross domestic solution (GDP) enhanced 1.% in the period from the earlier 3 months, statistics agency INEGI stated, matching forecasts from economists in a Reuters poll.
The figure, on the other hand, came in slightly beneath preliminary estimates disclosed by INEGI a month ago, when the statistics agency stated GDP had most likely enhanced 1.1% in the period on a sequential basis.
Economists had currently dubbed the preliminary 1st quarter information as “strong,” while noted a slowdown in the U.S. economy and tight monetary policy would possibly soften Mexico’s efficiency in the coming quarters.
“General, these numbers confirm a decent start off to the year,” Pantheon Macroeconomics’ chief economist for Latin America, Andres Abadia, stated about Friday’s figures. “But sequential information is confirming a gradual deterioration in current months.”
Extra indicators released by INEGI showed that financial activity in the nation shrank .three% in March from the earlier month.
Abadia stated the “superior news” was that fading development momentum and falling inflation would make it less complicated for the central bank to adopt a dovish tone quickly following pausing a practically two-year price-hike cycle earlier this month.
The quarterly GDP development, according to INEGI, was driven by a 1.five% jump in the tertiary or service sector and a .six% enhance in secondary activities, which comprise manufacturing.
Major activities such as farming, forestry, fishing and mining, nonetheless, shrunk by two.eight%.
In annual terms, the agency added, the economy expanded three.7% in the 1st 3 months of 2023 compared to a year earlier. That was slightly beneath the three.9% development anticipated by the marketplace and projected by final month’s preliminary information. (Reporting by Gabriel Araujo editing by Steven Grattan, Jason Neely and Conor Humphries)