Mexico’s economy grew 0.8% in the first quarter of the year compared to the previous quarter, a better pace than the preliminary estimated, Inegi reported on Wednesday.
The figure doubles the growth of 0.4% that the institute reported at the end of April, but falls below the 3.2% progress of the fourth quarter of 2020, according to figures adjusted for seasonal variations, confirming a slowdown in activity at the start of this year.
Read: Treasury improves GDP forecast by vaccination breakthrough: economy to grow 5.3% this year
In the annual comparison, the Mexican economy, the second largest in Latin America after Brazil, contracted 2.8%, according to the revised figure.
From January to March, the vast services sector, which accounts for nearly two-thirds of Mexico’s Gross Domestic Product (GDP), expanded by 0.9%, while industrial activity, equivalent to 30% of the economy, grew 0.5%.
Primary activities, including agriculture, livestock and forestry, expanded 0.7%, Inegi detailed.
In the first quarter of the year, Mexico – of 126 million inhabitants – experienced a serious uptick in COVID-19 cases and deaths, resulting in a restriction of various economic activities.
There were also power outages due to a harsh winter in the region, which mainly affected the industrial sector.
The Mexican government expects, however, an uptick in activity over the coming months thanks to a faster vaccination process and a better growth prospect in the United States, the country’s largest trading partner.
The Treasury secretariat estimates that the Mexican economy will grow 5.3% this year, after a historic collapse of 8.5% in 2020, while private analysts surveyed monthly by Banco de México expect an expansion of 4.8%.
The International Monetary Fund (IMF), for its part, estimates 5% growth.
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