In early 2024, Mexico’s economy began to slow down, with less activity in industries, trade, and services.
This change was highlighted by the Mexican Institute of Finance Executives (IMEF), which monitors economic performance.
According to IMEF, the first quarter of 2024 expanded, surpassing earlier forecasts.
However, varying sector performances hint at a move towards a slower growth phase.
The IMEF Manufacturing Indicator, for instance, spiked by 4.3 points in March, the highest increase in seven years, signaling robust expansion at 54.5 units.
In contrast, the Non-Manufacturing Indicator slightly declined by 0.6 points, although it remained expansionary for the 26th consecutive month at 52.1 units.
These indicators suggest a mixed economic scenario. While the service and trade sectors remain dynamic, there has been a noticeable deceleration in recent months.
March’s manufacturing rebound contrasted with the broader three-month perspective, pointing towards a cooling off in industrial momentum.
For the future, IMEF forecasts a 2.4% growth in 2024, with a slight dip to 1.9% in 2025.
These projections come after a year when Mexico, the second-largest economy in Latin America after Brazil, saw a 3.2% growth in 2023.
The Mexican government expects GDP growth of 2.5% to 3.5% in 2024 and 2.0% to 3.0% in 2025, showing confidence in the nation’s economic resilience amid the slowdown.
Background
On Wednesday, the Mexican Peso reached 16.56 against the dollar, its best performance since late 2015.
This surge is tied to expectations that Mexico’s central bank will maintain its strict monetary policy, which is crucial for controlling inflation.
According to Bank of Mexico records, the peso reached a high of 16.5920 and a low of 16.5140 on the same day.
This is a significant moment because it showcases the currency’s strength, not seen since December 2, 2015.