Mexico’s economy grows more than expected in the first quarter of 2023

By Zenyazen Flores

In the first quarter of 2023 and with seasonally adjusted figures, the results of the Timely Estimate of Quarterly Gross Domestic Product (EOPIBT) show an increase of 1.1% in real terms concerning the immediately preceding quarter.

At a quarterly rate, the timely GDP of tertiary activities advanced by 1.5%, that of secondary activities by 0.7%, and that of primary activities decreased -by 3.2% in the first quarter of 2023.

Meanwhile, at the annual rate and with seasonally adjusted series, the timely GDP estimate rose 3.8% in real terms.

By economic activity, tertiary activities increased 4.3%; primary activities increased 3.1%, and secondary activities increased 2.6%.

Both quarterly and annual GDP growth were higher than expected by analysts, who were forecasting an increase in economic activity of 0.8% quarterly and 3.3% at the annual rate.

The favorable growth figure is attributed to expanding tertiary activities, mainly consumption in commerce and services, as Mexican households spend on consumer goods and services.

The Mexican Government is optimistic, and for 2023 its forecast for economic growth is 3%, which is in line with the annual figure reported by Inegi for the first quarter.

Inegi’s Timely Estimate could change concerning the figures generated for the traditional quarterly GDP, to be published on May 26, 2023.

With information from Bloomberg

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