FX.co ★ Mexican GDP Unexpectedly Grows in Q1

In the first quarter of 2025, Mexico's GDP experienced a quarter-on-quarter increase of 0.2%, recovering from the previous quarter's 0.6% decline and surpassing the market's expectations of stagnant growth. Preliminary data reveal that output from primary sectors surged by 8.1%. In contrast, the industrial sector's GDP saw a contraction of 0.3%, while the services sector remained stable. Annually, Mexico's economy expanded by 0.6%. Although this slight quarterly growth was sufficient to prevent Mexico from falling into a technical recession, it does little to alter the broader landscape of economic vulnerability. The economic outlook remains overshadowed by high levels of domestic uncertainty, stringent financial conditions, and ongoing repercussions from the U.S. trade conflict.