Economic Activity in Mexico Expanded by 0.1% in April

Economic activity in Mexico modestly rebounded in April, according to information from the National Institute of Statistics and Geography (Inegi).

The Timely Indicator of Economic Activity (IOAE), which provides monthly economic tracking, reported a 0.1% monthly expansion in April. This represents a modest rebound from the estimated 0.2% decline in March.

On an annual comparison, the economy expanded by 1.7%.

April’s monthly advance occurred despite the stagnation Inegi forecasts for secondary and tertiary activities, which remained unchanged from March.

Gabriela Siller, Director of Economic and Financial Analysis at Banco Base, noted that the April data indicates the possibility of continued economic stagnation into the second quarter of the year.

She also suggested that there might be a revision of the first quarter’s GDP, as the IOAE data for March was revised downward.

According to the preliminary GDP estimate, Mexico grew 0.2% quarterly in the first third of the year, with an annual growth rate of 2.0%.

The government, considered optimistic, projects that the economy will grow by 3.0% this year, the last year of President Andrés Manuel López Obrador’s administration.

“Based on the information we have observed, we feel that February and March might come in better,” said Gabriel Yorio, Deputy Finance Minister, last month. He also denied any signs of a moderation in the country’s growth, as well as any deviation from the government’s official economic growth projections.