During the first quarter of 2021, the Mexican economy registered for the sixth consecutive quarter a negative year-on-year variation rate, after recording a rate of -2.77%. Nevertheless, it is worth noting that it increased by 1.90 p.p. compared to the previous quarter. Regarding prices, inflation registered a rate of 3.99% in the first quarter of the year, after increasing by 0.47 p.p. with respect to 4Q20. Regarding the labor market, the unemployment rate remained constant at 4.50% in the first quarter of 2021. The Mexican peso depreciated by 0.05% against the US dollar during 1Q21, reaching an average exchange rate of 20.55 pesos per dollar.


Macroeconomic outlook report: Mexico 1Q21

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Macroeconomic overview

  • The Mexican GDP registered its sixth consecutive quarterly contraction, recording a year-over-year variation rate of -2.77%. Nevertheless, it recorded an increase of 1.90 p.p. with respect to the previous quarter, which is the third consecutive increase over the previous quarter's growth, and consolidates the beginning of the Mexican economy's recovery.
  • As for the industrial activity index, during the first quarter of 2021, it registered an increase in its year-over-year growth of 1.50 p.p. with respect to the previous quarter, up to a rate of -1.87%.
  • Regarding the labor market, the unemployment rate remained constant compared to the fourth quarter at 4.50% in 1Q21.
  • The Mexican peso depreciated by 0.05% against the US dollar during 1Q21, reaching an average exchange rate of 20.55 pesos per dollar.
  • Inflation registered a rate of 3.99% in 1Q21, after accelerating by 0.47 p.p. compared to the previous quarter.

For more information click here to access the executive document in pdf (only available in Spanish).