Services boosted growth of economic activity in Mexico

Mexican economic activity advanced 2.5% year-on-year in April, driven in particular by servicesas reported on Monday by the National Institute of Statistics and Geography (Inegi) based on original figures.

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The Inegi indicated in a statement that this rise in the Global Indicator of Economic Activity (Igae) of Mexico is the result of the annual increase in all sectors: primary (2.9%), secondary (0.7%), and tertiary (3.3%).

According to seasonally adjusted figures, without circumstantial and calendar factors, the IGAE also had a monthly increase of 0.8%. Compared to the previous month, the agricultural sector advanced 1.2%, industry grew 0.4% and services 1%.

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The Igae is a preliminary indicator of different sectors that shows the trend or direction that the Mexican economy will have in the short term. The data for April is published after the growth of the gross domestic product (GDP) in the first quarter, when it advanced 3.7% year-on-year and 1% quarterly.

The country had an annual growth of 3.1% in 2022 after the increase of 4.8% in 2021. In addition to more than 7 million cases and more than 333,000 deaths, The covid-19 crisis caused a contraction of 8.2% of Mexico’s GDP in 2020its worst crash since the Great Depression of 1932.

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Mexico’s economy grew by 2.1% in 2018, but had a contraction of 0.3% in 2019. The Government expects to repeat growth close to 3% for this year.

EFE