Mexico’s economic activity beat all estimates in January 2023, expanding at the fastest annual pace in five months amid a recovery in the country that continues faster than expected.
Activity in Latin America’s second-largest economy grew 4.4% from a year earlier, Mexico’s National Institute of Statistics and Geography (INEGI) reported on Friday, March 24.
The result exceeded all estimates of economists surveyed by Bloomberg, indicating a median growth of 3%.
On a month-over-month comparison, activity rose 0.56%.
After taking a hit during the pandemic, the Mexican economy benefits from stable macroeconomic conditions and growing investment, including relocating foreign industrial projects to the country, a process known as “nearshoring.”
Inflation reached its highest level in more than 20 years in September and has been decelerating after an aggressive monetary policy tightening cycle.
According to official data, the services sector expanded 5.6% versus a year earlier, while industrial activity grew 2.8% in January.
With information from Bloomberg
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Mexico Economy 2026: GDP, Peso, Nearshoring, Banxico and Trade
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