Mexico's Economic Growth in January: An Increase of 1.8%

The Mexican economy experienced a growth of 1.8% in January, compared to the same month last year, according to preliminary data released this Tuesday by Inegi. In addition, the economy showed an increase of 0.1% in January compared to December, as reported by the agency.

For December, the timely indicator of economic activity (IOAE) is expected to show a decline of 0.3%. This suggests an estimated contraction of the quarterly GDP of 0.53% during the fourth quarter, which is similar to the GDP estimate of 0.55% (where the final result is rounded to 0.6%). This revision of the GDP for the fourth quarter will be published on Friday, February 21, along with the Global Indicator of Economic Activity (IGAE) for December, according to statements from Banco Base. “The IOAE projections indicate that there are signs of a slowdown in economic activity for 2024,” stated Monex. This implies a marked slowdown in secondary activities, although to a lesser extent in services, the same source emphasized. The IOAE anticipates economic behavior before the general IGAE index is published, which serves as the benchmark for monthly GDP. Information from Reuters.

This growth, while positive, should be viewed with caution, as projections for a slowdown in 2024 and expected declines in certain sectors highlight the need for effective economic policies that promote sustainable and resilient growth. It is crucial for investors and businesses to stay informed about these trends to make informed decisions in an uncertain economic environment.