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Macroeconomic outlook report: Mexico

First quarter of 2018

During the first quarter of 2018, Mexico recorded a year-over-year growth rate of 2.33%, which supposed an acceleration of 0.86 p.p. compared to the previous quarter. This behavior was mainly due to the quarterly acceleration experienced by domestic demand. Regarding the labor market, the unemployment rate decreased to 3.14%. The Mexican peso appreciated against the US dollar, and registered an average exchange rate of 18.55 MXN/USD during the first quarter of the year.

Macroeconomic overview

  • The Mexican GDP registered a y/y growth rate of 2.33%, accelerating 0.86 p.p. with respect to the previous quarter. This behavior was motivated by the quarterly acceleration experienced by domestic demand, through the higher growth of private consumption and investment. In addition, the Industrial Activity Index registered an acceleration in its year-over-year growth rate of 0.60 p.p., up to a rate of -0.03%.
  • Regarding the labor market, the unemployment rate fell 0.21 p.p. compared to 4Q17, to a rate of 3.14%. On the other hand, the year-over-year growth of employment accelerated by 0.54 p.p. up to 1.96%.
  • The Mexican peso appreciated against the US dollar during 1Q18. The exchange rate stood at 18.55 MXN/USD in the first quarter of the year, which represented an appreciation of 0.45 pesos per dollar compared to 4Q17.
  • Inflation reached 5.31% in 1Q18, which represented a decrease of 1.28 p.p. compared to the previous quarter, mainly driven by the monetary policies carried out by the Bank of Mexico and the lower growth in energy prices.

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

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.