Mexico’s economy expanded in line with analysts’ forecasts in the first quarter as domestic consumption rebounded.
Gross domestic product rose 2.5 percent from a year earlier, the national statistics institute said Thursday, compared with the 2.4 percent median forecast of 24 economists surveyed by Bloomberg. While Mexico grew 0.4 percent from the previous three-month period, the gains came in January and February. The economy contracted in March, according to the IGAE economic indicator also released Thursday, signaling weakness heading into the second quarter.
Retail sales gains and consumer credit expansion helped fuel “moderate growth” in the first quarter, Banco de Mexico Governor Agustin Carstens said at a presentation Tuesday. GDP forecasts have been falling on a drop in oil prices and output, and growth going forward will depend on the U.S., the buyer of 80 percent of Mexico’s exports, said Alonso Cervera, the chief Latin America economist at Credit Suisse Group AG.
