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30.04.202612:13:22UTC+00Mexico GDP Contracts More than Expected

Mexico’s GDP shrank by 0.8% in the first quarter of 2026 compared with the previous quarter, wiping out the 0.9% growth recorded in the final quarter of 2025 and exceeding forecasts for a milder 0.5% decline. The downturn was broadly consistent with projections from the Bank of Mexico, which resumed its interest rate‑cutting cycle despite a sharp rebound in inflation since March.

Output in primary activities fell by 1.4%, even amid a surge in silver and energy prices. Production in the secondary sector declined by 1.1%, as manufacturers continued to adjust to U.S. tariffs that have curtailed a key source of demand for auto producers. Services output also weakened, contracting by 0.6%. On an annual basis, GDP edged up just 0.1% from the same quarter a year earlier.

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