Economic activity in Mexico falls more than expected in April

Regarding services, the monthly reductions of 3.3% in wholesale trade, 2.5% in retail trade, information in mass media of 2.5% and hotels and restaurants that fell 1% stand out, Citibanamex highlighted. .

“The fall was much greater than that initially estimated by the Timely Indicator of Economic Activity (IOAE) for the same month of 0.28%. This is the largest monthly drop in the IGAE since August 2021,” said Banco Base.

Despite the drop in April, the firm added, “in the accumulated of the first four months of the year, the IGAE registered a growth of 1.96% compared to the same period of the previous year.”

“Considering these results and the timely information from May, we see quarterly GDP growth of 0.3% in the second quarter of the year,” estimated Citibanamex.

At an annual rate, and with denationalized figures, the IGAE registered an increase of 0.9% in real terms during April, with a growth in tertiary activities of 1.3%, and 0.6% in secondary activities; primary activities had a decline of 1%.