Overview of Mexico’s Economic Performance
The National Institute of Statistics and Geography (INEGI) reported that Mexico’s Gross Domestic Product (GDP) grew by 0.2% in the first quarter of the year, compared to the last quarter of the previous year, in real terms and adjusted for seasonality.
GDP Growth Breakdown
- Primary Sector: The primary sector led the growth with a 6.7% increase compared to the last quarter of the previous year. This sector includes agricultural activities, which account for less than 1% of the national GDP.
- Secondary Sector: The secondary sector, which includes manufacturing and mining activities, experienced a 1.3% decline.
- Tertiary Sector: The tertiary sector, comprising services and commerce, grew by 1.1%.
Expert Opinions on the Economic Performance
Andrés Abadía, Chief Economist for Latin America at Pantheon Macroeconomics based in London, cautioned that the growth uptick offers little reason for optimism as it is backed by volatile indicators, such as those from primary activities.
Pamela Díaz Loubet, economist for Mexico at BNP Paribas, echoed Abadía’s sentiment. She explained that the economic cycle’s conditions became evident in the other two components of activity. We are entering a phase of deceleration where there is also a normalization in the demand for services following the post-pandemic rebound, she emphasized.
Annual Performance: Positive but Weak
According to INEGI, the annual reading shows a 0.6% growth in GDP from the beginning of the previous year to the same period in 2025.
Comparing this annual economic performance to the first quarter of each year since 2021, 2025 stands out as the least dynamic in the first five years post-pandemic, marking two consecutive years of deceleration following the peak in 2023.
Key Questions and Answers
- What is the overall GDP growth for Q1 2025? Mexico’s GDP grew by 0.2% in the first quarter of 2025 compared to the last quarter of 2024.
- Which sectors contributed most to the growth? The primary sector, including agriculture, led the growth with a 6.7% increase.
- What did the secondary and tertiary sectors show? The secondary sector experienced a 1.3% decline, while the tertiary sector grew by 1.1%.
- How do experts view this growth? Experts like Andrés Abadía and Pamela Díaz Loubet have expressed caution, noting that the growth is backed by volatile indicators and that the economy is entering a phase of deceleration.
- How does Mexico’s annual GDP growth compare to previous years? The 2025 annual growth is the weakest in the first five years post-pandemic, marking two consecutive years of deceleration since the peak in 2023.
