MEXICO CITY (AP) — Mexico’s economy grew 1% in the first three months of the year, accelerating somewhat after registering meager 0.2% growth in the previous quarter, according to seasonally adjusted data released by the government Wednesday.
Compared to the first quarter of last year, the economy grew 1.8%, according to the National Institute of Statistics and Geography.
Mexico did face some challenges during the quarter, including a spike in COVID-19 infections to start the year and rising inflation, noted Moody’s Analytics Director Alfredo Coutiño in a report. There was also the disruption caused by Russia’s invasion of Ukraine and continuing global supply shortages.
“Given the prolonged domestic weakness, the ongoing monetary tightening and the risk of a global slowdown, the economy’s performance will remain limited along 2022,” he wrote.
Demand for Mexican imports, however, continued to increase, buoyed by demand in the United States and Mexicans living abroad continued to support their families back home with remittances.
Coutiño forecast economic growth of about 2% for the year, down from last year’s 5% rebound.