The risks of Mexico’s economic recovery losing momentum over the next few quarters are increasing and would be greater if the United States falls into contraction, the Mexican Institute of Finance Executives (IMEF) warned yesterday, Wednesday.
So far, the pace of the first two months of the year suggests that the Mexican economy is on moderate momentum, according to IMEF leading indicators.
The IMEF Manufacturing Indicator for February increased by 1.1 points with respect to January, reaching 51.3 units, according to the private organization in its monthly press release.
Meanwhile, the IMEF Non-Manufacturing Indicator maintained its expansion trend by ending February at 52.9 units, suggesting the continuation of growth in the services and commerce sectors.
“The risks of the recovery losing momentum during the next quarters are increasing and would particularly intensify if a contraction of the Gross Domestic Product (GDP) in the United States were to occur,” said the IMEF.
Mexican GDP grew 0.5 percent in the fourth quarter of 2022, a slower pace versus the 1.1 percent seen in previous periods.
Mexico’s economy, the second largest in Latin America after Brazil, grew 3.1 percent in 2022, supported mainly by U.S.-linked industrial activity, according to revised figures from the National Institute of Statistics and Geography (Inegi) released last Friday.