MEXICO CITY, July 25 (Reuters) – Mexico’s economy grew for what is likely a third straight quarter between April and June, albeit at a slower pace due to the economic fallout from Russia’s war in Ukraine and COVID-19 lockdowns in China , as a poll by Reuters revealed Monday.
Gross domestic product (GDP) (MXGDQP=ECI) is expected to have risen a seasonally adjusted 0.8% in the second quarter from the first quarter, according to the median forecast of 12 analysts.
The second largest economy in Latin America grew by 1% in the first quarter.
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“The outcome would be favorable and would be mainly driven by the strength of external demand,” Grupo Financiero Banorte said in an analyst report.
“However, in our view, the outlook has deteriorated over time as it has been hit by major external shocks as well as a slowdown in domestic momentum,” Banorte said.
The survey showed that Mexico’s economy will have grown 1.4% year-on-year (MXGDYP=ECI) in the second quarter, compared to 1.8% growth in the first quarter.
“We expect activity to slow for the remainder of 2022, resulting in 2022 cumulative GDP growth of 1.5%,” noted analysts at Citibanamex.
Mexico’s national statistics agency INEGI is expected to release preliminary GDP data for the second quarter on Friday morning.
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Reported by Noe Torres; Additional reporting by Gabriel Burín in Buenos Aires; writing from Valentine Hilaire; Editing by Anthony Esposito and Lisa Shumaker
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