Mexico’s Economy Grew 1% In 1st Quarter

• Mexico’s economy grew 1% in the first three months of the year, accelerating somewhat after registering a meager 0.2% growth in the previous quarter, according to seasonally adjusted data released by the government on May 25. Furthermore, when compared to the first quarter of last year, the economy grew 1.8%, according to the National Institute of Statistics and Geography. 
• Notably, Mexico faced some challenges during the quarter, including a spike in COVID-19 infections at the start of the year, rising inflation, disruptions caused by Russia’s invasion of Ukraine, and continuing global supply shortages. As such, “given the prolonged domestic weakness, the ongoing monetary tightening and the risk of a global slowdown, the economy’s performance will remain limited along 2022,” according to Moody’s Analytics Director Alfredo Coutiño. 
• Demand for Mexican imports, however, continued to increase, buoyed by demand in the United States, and Mexicans living abroad continued to support their families back home with remittances. Consequently, as these factors continue to support performance, the IMF forecasts economic growth of about 2% for the year, down from last year’s 4.8% rebound.

(Sources: AP News & IMF)