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Mexico avoids recession despite tariff uncertainty

  • Mexico's economy avoided a recession in the first quarter of 2025, growing 0.2 percent from the prior quarter according to INEGI data.
  • This growth followed a contraction in late 2024 amid uncertainty from US tariffs announced by President Trump as part of a global trade war.
  • Growth was driven by a rebound in agriculture and other sectors, while manufacturing continued to struggle due to the tariffs and related economic pressures.
  • Economist Kimberley Sperrfechter highlighted in communications with clients that the manufacturing sector's continued difficulties indicate that US tariffs imposed on Mexico during the previous quarter negatively impacted the country's economic performance.
  • Despite this, Mexico outpaced the US economy, which contracted in early 2025, and the government remained optimistic due to ongoing foreign investment and economic support measures.
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elsiglodetorreon.com.mx broke the news in on Wednesday, April 30, 2025.
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