Mexico’s economy shrank in this year’s first quarter, but less than anticipated
The national statistics agency INEGI on Friday confirmed that Mexico’s economy contracted during the first quarter of the year, but not as much as the preliminary data had suggested. Even so, GDP registered its biggest drop since the fourth quarter of 2014, shrinking 0.6% in the January-March period compared to the previous three months. It was also the worst first quarter since 2020, when the onset of the Covid-19 pandemic caused the economy to shrink by 1.2%. At -1.7%, the steepest decliner was the primary sector, which includes agriculture. (Unsplash) The first-quarter contraction revived concerns about a possible technical recession, a scenario defined as two consecutive quarters of negative growth in real GDP. The decline in GDP overshadows the 0.7% recovery observed in 4Q 2025, which provided a slight bump at the end of a slug2gish year. “The weakness was broad-based across major sectors, reinforcing the view that the slowdown reflects fading domestic momentum rather than...