Mexico’s economy began to lose momentum in the second quarter of 2023, in line with the slowdown shown by some leading global indicators, the Mexican Institute of Finance Executives (IMEF) said Tuesday.
“Although the tone of economic growth prevails, the dynamism of the trade and services sector lost some strength, while the rebound of the manufacturing sector is insignificant,” the private organization said in a press release.
The IMEF Manufacturing Indicator for April increased by 1.0 points concerning March, reaching 50.6 units.
Still, the institute says the index does not show sufficient elements to indicate that growth is robust and persistent.
On the other hand, it added that the IMEF Non-Manufacturing Indicator (which anticipates the activity of commerce and services) decreased by 1.3 points in April to 52.2 units.
IMEF members detected that some of the leading manufacturing indicators of the main global economies are contractionary, suggesting that a slowdown or recession could materialize in the following months.
However, the Asian and Latin American regions are better positioned to face global adversities than markets such as Europe, the Middle East, and Africa, according to IMEF.
The organization projects an economic expansion for Mexico of 1.5% in 2023.
The Mexican economy, the second largest in Latin America after Brazil, grew 3.1% in 2022, from the 4.7% expansion observed the previous year.
With information from Xinhua