Mexico economy shrinks in first quarter, but beats bleakest forecasts
INEGI said broad weakness in manufacturing, services and agriculture drove the slowdown, while the economy still rose 0.2% from a year earlier.
- INEGI reported that Mexico's economy shrank 0.6% in the first quarter of 2026, outperforming the 0.8% decline economists predicted in a Reuters poll.
- The primary sector recorded the steepest decline at 1.7%, while manufacturing and construction fell 1% and services dipped 0.4% across major sectors.
- Pantheon Macroeconomics chief LatAm economist Andres Abadia noted the contraction reflects fading domestic momentum rather than an isolated shock, following revised growth of 0.7% in the fourth quarter of 2025.
- Separately, INEGI reported Mexico's economic activity increased 0.4% in March from the prior month, with annual expansion at 0.2%, slightly exceeding the 0.1% growth economists expected.
- Uncertainty, including the impact of the Israeli war with Iran, persists as the central bank cut interest rates to 6.50% in early May; analysts remain cautious regarding Mexico's economic outlook for 2026.
14 Articles
14 Articles
Mexico’s economy shrank in this year’s first quarter, but less than anticipated
The national statistics agency INEGI on Friday confirmed that Mexico’s economy contracted during the first quarter of the year, but not as much as the preliminary data had suggested. Even so, GDP registered its biggest drop since the fourth quarter of 2014, shrinking 0.6% in the January-March period compared to the previous three months. It was also the worst first quarter since 2020, when the onset of the Covid-19 pandemic caused the economy to…
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Mexico Economy Contracts in First Quarter as Broad-Based Weakness Signals Slowing Momentum
Mexico’s economy contracted in the first quarter of the year, shrinking by 0.6% compared with the previous three-month period, according to data released on Friday ... The post Mexico Economy Contracts in First Quarter as Broad-Based Weakness Signals Slowing Momentum first appeared on [your]NEWS.
Mexico’s economy contracted in the first quarter, although less than previously estimated, on Friday official figures suggest a more moderate deterioration at the beginning of the year. Gross Domestic Product (GDP) fell by 0.6% compared to the period October-December 2025, according to seasonalized figures of the National Institute of Statistics, INEGI. By the end of April, the institution had predicted that Latin America’s second largest econom…
The economy of Mexico contracted less than expected in the first quarter, with an activity affected by the weakness of the agricultural, manufacturing and services sectors.The Gross Domestic Product recorded its biggest fall since the last quarter of 2024, when it contracted 0.6 percent in the period January to March compared to the previous three months, according to final data published on Friday by the National Institute of Statistics and Geo…
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