Economics: Trouble ahead despite some marginal upticks in the 1Q preliminary GDP report

MEXICO - Report 05 May 2025 by Mauricio González and Francisco González

While last week’s preliminary GDP report for the first quarter may have marginally surpassed some expectations, its scant improvement appears to mask deeper economic problems. Robust numbers for January allowed the agricultural sector to deliver most of the economic growth last quarter, as industrial activity contracted yet again and services continue to stall as consumers curb their spending. There are fears of a greater deceleration of private consumption in the coming months as consumers grow increasingly pessimistic about their own economic prospects at a time when job growth is stalling.

Although the country posted strong trade results for the first the first quarter thanks to surpluses in February and March, this may prove a passing development. It appears that companies sped up shipments in anticipation of further US tariffs' taking effect. In this context, manufacturing and automotive exports saw considerable growth.

This week’s Outlook helps to fill out the picture with a review of the main economic indicators, public finance developments, the government’s latest economic guidelines and the most recent inflation figures.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2025 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.