Mexico’s GDP grew by 1.5%

The National Institute of Statistics and Geography (INEGI) forecasts that Mexico’s Gross Domestic Product (GDP) could grow by 1.5%; if this projection is confirmed in the final economic data, it would mean that the previous contraction of 0.6% would be left behind.

Andrés Abadía, the Latin America economist at the consulting firm Pantheon Macroeconomics, has emphasized that the factors driving the Mexican economy are temporary.

Abadia notes that the current pace of growth will not be sustainable. Economic activity benefited from the boost that the World Cup provided to tourism, retail, and entertainment spending; however, these factors have now faded, and the outlook is likely to be affected by “higher energy prices and persistent trade uncertainty.”

Otherwise, Inegi reports that agriculture, fishing, and livestock showed the strongest growth during the quarter, posting a 3.3% increase.

Similarly,the secondary sectors—which include manufacturing, construction, and power generation—posted a 1.6% increase compared with the previous quarter. And the tertiary sectors, which include services and commerce, grew by 1.5% quarter-over-quarter.

According to the preliminary GDP estimate released by INEGI, which showed growth of 2.1%.

However, Abadia continues to argue that in the future, “household consumption of goods and services is likely to continue facing obstacles stemming from persistent domestic and external uncertainty and weak consumer confidence,” said Alberto Ramos, an economist for Latin America at Goldman Sachs, speaking from New York.