(Adds specifics in initially paragraph, comments from economists in paragraphs five-7)
May possibly 26 (Reuters) – Mexico’s economy grew for a sixth straight quarter in the initially quarter, information from Latin America’s second-biggest economy showed on Friday, with development in line with market place expectations.
Gross domestic solution (GDP) grew by 1. % in the period of the preceding 3 months, the statistics agency INEGI stated, matching the forecasts of economists in a Reuters poll.
The figure, nonetheless, was slightly beneath preliminary estimates released by INEGI a month ago, when the statistics agency stated GDP most likely rose 1.1% in the period on a sequential basis.
Economists have currently known as preliminary initially-quarter information “strong,” although they noted a slowdown in the U.S. economy and tight monetary policy is most likely to dampen Mexico’s functionality in the coming quarters.
“All round, these numbers confirm a decent start out to the year,” Pantheon Macroeconomics chief economist for Latin America Andres Abadia stated of Friday’s numbers. “But successive information confirm a gradual deterioration in current months.”
Added indicators published by INEGI show that financial activity in the nation decreased by .three% in March compared to the preceding month.
Abadia stated it was “great news” that weakening development momentum and falling inflation would make it less complicated for the central bank to adopt a dovish tone shortly just after pausing a practically two-year cycle of interest price hikes earlier this month.
Quarterly GDP development, according to INEGI, was driven by a 1.five% jump in the tertiary or service sector and a .six% improve in secondary activities, which consist of manufacturing.
Principal activities such as agriculture, forestry, fishing and mining, nonetheless, decreased by two.eight%.
On an annual basis, the agency adds, the economy grew by three.7 % in the initially 3 months of 2023 compared to a year earlier. That was slightly beneath the three.9% development anticipated by the market place and projected according to final month’s preliminary information. (Reporting by Gabriel Araujo Editing by Stephen Grattan, Jason Neely and Conor Humphries)