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Source: AFP
Mexico's economy returned to maturation successful the archetypal 4th of 2025, avoiding a recession contempt heavy uncertainty implicit US President Donald Trump's sweeping tariffs, authoritative information showed Wednesday.
Gross home merchandise (GDP) grew 0.2 percent from the 4th fourth of 2024, erstwhile Latin America's second-largest system had contracted for the archetypal clip successful 3 years, nationalist statistic bureau INEGI reported.
Year-on-year, GDP roseate 0.6 percent successful the archetypal quarter, it said successful a preliminary estimate.
The affirmative maturation means Mexico outpaced the US economy, which information released connected Wednesday showed contracted successful the archetypal 3 months of the year.
The resilient performance, astatine slightest for now, eased fears of a recession, mostly defined arsenic 2 consecutive quarters of economical contraction.
"The system dodged a method recession past quarter. But maturation was driven by a rebound successful agriculture and the remainder of the system -- and the manufacturing assemblage successful peculiar -- continued to struggle," Kimberley Sperrfechter, an economist astatine the Capital Economics consultancy firm, wrote successful a enactment to clients.
"The weakness successful industry suggests that US tariffs connected Mexico (threatened successful February and successful unit successful March) took a toll connected the system past quarter," she added.
Trump has announced assorted tariffs targeting Mexico, arsenic good arsenic respective argumentation U-turns, arsenic portion of his planetary commercialized war.
While helium near Mexico disconnected the database of nations facing his steep "reciprocal tariffs," its carmakers arsenic good arsenic alloy and aluminum exporters inactive look duties.
Given the uncertain outlook, Mexico's cardinal slope was apt to denote different half-percentage-point chopped to its benchmark involvement complaint successful May, Sperrfechter predicted.
The International Monetary Fund has predicted that Mexico's system volition shrink by 0.3 percent this year.
President Claudia Sheinbaum has said her outlook is much optimistic, due to the fact that of her efforts to boost the system and pull overseas investment.
Her authorities has touted a bid of large investments pledged by planetary companies successful caller weeks, including e-commerce behemoth Amazon, its determination rival Mercado Libre, streaming elephantine Netflix and Spain's biggest slope Santander.
In theory, Mexico should beryllium protected against US tariffs by a North American escaped commercialized statement that was renegotiated during Trump's archetypal word successful office.
The United States-Mexico-Canada Agreement (USMCA), which replaced the erstwhile NAFTA accord connected July 1, 2020, is owed to beryllium reviewed by July adjacent year.
Mexico replaced China successful 2023 arsenic the largest trading spouse with the United States, which buys much than 80 percent of its exports.
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Source: AFP
