Mexico economy grows in first quarter, but recovery slow

Mexico City, April 30 (BNA): Mexico’s economy showed life in the first three months of the year, growing 0.9% compared to the last quarter of 2021, according to preliminary estimates released Friday by the Mexican statistics agency.

This was an improvement from zero growth in the final three months of 2021 and a slight dip in the prior quarter to that, but the economy continued to show weakness after its initial recovery from the COVID-19 pandemic shutdown in 2020, fueled in large part by the US economic recovery. .

The Associated Press (AP) reported that GDP in the first quarter of 2022 was 1.6% higher than the same period a year earlier.

Moody’s Analytics Director Alfredo Coutinho said in a report on Friday that Mexico’s economy has not recovered to its pre-pandemic level of production.

“Her weakness has extended and the outlook for this year has been revised downward,” Coutiño wrote. “Mexico will report the second smallest growth among the seven largest economies in Latin America, trailed only by Brazil.”

Coutinho said the Mexican economy remains at risk of a significant slowdown. Growth in 2021 was 5%, but growth is now expected to average around 1.5% in 2022.

The weakness of the economy, he said, “is mainly the result of chronic anemic investment, which has been exacerbated in the past three years by the reticence of private investors due to a loss of confidence in policy making.”

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