Mexico Annual GDP Growth Rate Revised Down to 1.2%

The Mexican economy advanced 1.2 percent year-on-year in the first quarter of 2019, below a preliminary figure of 1.3 percent and 1.7 percent in the previous period. It is the weakest expansion since Q1 2018, as services slowed and the industrial sector continued to shrank. Primary activities rose slightly less than initially estimated.

Services grew 1.9 percent in the first quarter of 2019, matching the initial estimate and slowing from a 2.7 percent expansion in the previous period. Growth slowed in: retail trade (0.8 percent vs 1.8 percent in Q4); wholesale trade (2.8 percent vs 3 percent); transport & storage (0.7 percent vs 2.2 percent); information & communication (0.1 percent vs 8.5 percent); finance & insurance (6.8 percent vs 9 percent) and real estate activities (1.9 percent vs 2.1 percent). Moreover, declines were seen in corporate services (-3 percent vs -1.1 percent); cultural and sports activities (-2.4 percent vs 0.2 percent) and food & accomodation services (-1.3 percent vs 0.2 percent). In contrast, professional, scientific and technical services (5.6 percent vs 4.1 percent) and business services (7.7 percent vs 3.5 percent) posted sharp gains.

The industrial sector contracted 0.7 percent, in line with the preliminary figure, following a 0.9 percent decline in the previous period. Declines were recorded in mining (-7.6 percent vs -7.3 percent), mostly due to oil (-10.2 percent vs -8.2 percent); utilities (-0.7 percent vs 1.4 percent) and construction (-0.8 percent vs -2.2 percent). Meanwhile, manufacturing activity rose slightly faster (1.6 percent vs 1.5 percent).

In contrast, the primary sector advanced 5.8 percent, below a preliminary reading of 5.9 percent, but faster than a downwardly revised 2.9 percent rise in the fourth quarter.

On a quarterly basis, the economy shrank 0.2 percent, in line with the initial figure and after showing no growth in Q4.

Mexico Annual GDP Growth Rate Revised Down to 1.2%

INEGI | Luisa Carvalho |
5/24/2019 2:39:39 PM