Mexico’s gross domestic product (GDP) fell just 3.6 percent in the first quarter of 2021 year-on-year, the National Institute of Statistics and Geography (Inegi) said on Wednesday, May 26, revising its initial estimate of a 3.8 percent drop.
According to a revised breakdown by economic segments, the services sector plummeted 4 percent between January and March of this year compared to the same period of 2020, when the novel coronavirus disease first emerged in Mexico.
Meanwhile, Mexico’s industrial activity, which is closely linked to that of the United States, fell 2.7 percent in the first quarter year-on-year, according to Inegi’s revised figures.
Agricultural activity, on the other hand, grew 2.8 percent in the first quarter, the autonomous statistics agency said in a statement.
Inegi’s seasonally adjusted figures showed a year-on-year drop of 2.8 percent, down from the 2.9 percent estimated earlier.
Compared to the previous quarter, GDP in the first quarter saw 0.8 percent growth, compared to the 0.4 percent originally estimated.
In response to Inegi’s definitive GDP results, Barclays investment bank upgraded its 2021 growth forecast for Mexico to 6 percent, up from 5 percent.
“The revised first quarter GDP report was stronger than we anticipated and suggests that the economy will be returning to its pre-pandemic levels sooner than anticipated,” Barclays chief Latin America economist Marco Oviedo said on Twitter.