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Mexican Economy Surprisingly Strong in early 2017 despite Trump Concerns

LADB Article ID: 80289
Category/Department: Mexico
Date: 2017-05-10
By: Carlos Navarro

The Mexican economy experienced a much better than expected performance during the first four months of 2017, but uncertainty about future economic relations with the US could restrict economic growth for the rest of the year. The national statistics agency (Instituto Nacional de Estadística y Geografía, INEGI) said Mexico’s GDP for January-March grew by 2.7% relative to the same three-month period in 2016. Furthermore, the economy grew by a seasonally adjusted 0.6% relative to October-December 2016. According to the INEGI report, the services sector contributed most to the growth, while industrial production largely remains unchanged. The flat growth in the industrial sector was attributed to weak demand in the US, due in part to slow economic growth north of the border in January-March.“The balance of the economy in the first 100 days of the Trump administration can be summarized in the numbers published by INEGI today,” said Luis Madrazo, chief economist at the Finance Ministry (Secretaría de Hacienda y Crédito Público, SHCP). “A higher-than-expected growth rate, and a higher rate of growth compared with last year that is showing resistance to the uncertainty that has hit us from abroad.”

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