MEXICO CITY, July 29 (Reuters) – Mexico’s economic performance during the second quarter likely experienced a modest improvement, driven by gains in manufacturing and services that counterbalanced declines in agriculture, according to a Reuters survey conducted on Tuesday.
Analysts’ median projection indicates that seasonally adjusted GDP rose by 0.4% compared to the prior quarter, based on responses from 13 experts. Pantheon Macroeconomics noted that stronger industrial activity, especially in construction, combined with sustained service sector strength, supported growth despite weaker agricultural production.
On an annual basis without seasonal adjustments, the economy is estimated to have expanded by 0.2% compared to the same period last year, representing the weakest growth rate since early 2021.
Looking forward, economic conditions appear challenging for the remainder of the year, primarily due to ongoing uncertainty regarding trade policies from the United States, Mexico’s primary trading partner.
The International Monetary Fund revised its forecast for Mexico on Tuesday, predicting 0.2% growth for this year. While this represents an improvement from the 0.3% contraction previously anticipated in April, it would still mark the country’s weakest economic performance since the pandemic began.
Reporting by Gabriel Burin in Buenos Aires; Writing by Noe Torres in Mexico City; Editing by Leslie Adler