Mexico Economy Shrinks 0.2% QoQ in Q1

The gross domestic product in Mexico declined 0.2 percent on quarter in the three months to March 2019, in line with the preliminary figure and after showing no growth in the prior quarter. Services and industry shrank and the primary sector lost steam.

The industrial sector fell 0.6 percent, matching an earlier estimate and compared with an upwardly revised 1.3 percent contraction in the fourth quarter of 2018. Output decreased in mining (-1.4 percent vs -4 percent); utilities (-1.3 percent vs -1.6 percent) and manufacturing (-0.4 percent, the same pace as in Q4) while it rebounded for construction (0.8 percent vs -1.4 percent).

Services shrank 0.2 percent, in line with the initial figure and compared to a downwardly revised 0.4 percent growth in the previous quarter. Contractions were seen in wholesale trade (-1.9 percent vs 0.5 percent); transport & storage (-0.7 percent vs -0.2 percent); information & communication (-5.4 percent vs 2.7 percent); corporate services (-2.2 percent vs -2.1 percent); education (-0.2 percent vs 0.6 percent); cultural and sports activities (-2 percent vs -1.7 percent) and food & accomodation services (-0.7 percent vs -0.2 percent). Also, growth slowed in retail trade (0.7 percent vs 0.9 percent) and it stalled for finance & insurance (vs 0.9 percent in Q4). In contrast, professional, scientific and technical services (2.7 percent vs 1.0 percent) and business services (2.6 percent vs 0.6 percent) advanced much faster.

In contrast, the primary sector expanded 2.6 percent, matching the preliminary reading, but easing from an upwardly revised 2.8 percent rise in the previous quarter.

Year-on-year, the GDP grew 1.2 percent, below an earlier figure of 1.3 percent and 1.7 percent in the previous quarter. It was the weakest growth rate since Q1 2018.

Mexico Economy Shrinks 0.2% QoQ in Q1

INEGI | Luisa Carvalho |
5/24/2019 2:31:13 PM