Sunday, June 22, 2025

Mexico’s economy exceeded growth forecast in April

Mexico in April recorded its strongest month-over-month economic growth in more than a year, official data shows.

The national statistics agency INEGI reported Monday that the Global Indicator of Economic Activity (IGAE), which measures gross domestic product on a monthly basis, increased 0.8% in April compared to the previous month.

Economic activity in the primary sector (including agriculture) increased 1.2% from March to April. (Secretaría de Trabajo)

It was the best result since March 2022, following a 0.2% month-over-month contraction in March. The 0.8% growth figure easily exceeded the expectations of analysts from Citibanamex, who forecast a 0.4% month-over-month increase.

Seasonally adjusted figures show that primary sector economic activity increased 1.2% in April compared to March, secondary sector activity grew 0.4% and tertiary sector activity expanded 1%.

The annual increase on the IGAE based on seasonally adjusted figures was 3.3%, INEGI said.

Andrés Abadia, chief Latin America economist at the U.K.-based Pantheon Macroeconomics, attributed the strong economic result in April to a range of factors, including the strength of the labor market, the decline in inflation, the federal government’s welfare spending and the growing nearshoring phenomenon.

The Yinlun Salinas Cruz factory under construction in 2022
A factory in Salinas Victoria, Nuevo León – seen here under construction in 2022 – is part of a wave of nearshoring by manufacturers looking to strategically access the North American market. (Hofusan Industrial Park/Twitter)

“These drivers [of economic growth] have completely offset the impact of tighter financial conditions and the weakening of external demand,” he said.

The publication of the final economic data for April comes a week after INEGI released preliminary figures for May showing month-over-month and annual growth of 0.1% and 2.5%, respectively.

Mexico’s economy grew 3.1% in 2022, while President López Obrador recently asserted that GDP will expand by 4% this year. Earlier this month, the World Bank updated its 2023 growth forecast for the Mexican economy to 2.5%, a significant improvement from the 0.9% prediction it made in January.

With reports from El Economista, La Jornada and El Financiero

Have something to say? Paid Subscribers get all access to make & read comments.
An AI robot hand reaches out to touch a human hand

How do we make sure that AI doesn’t make us dumber? A perspective from our CEO

10
AI can make us smarter or it can make us lazier. CEO Travis Bembenek shares how Mexico News Daily is working to offer readers the good kind of AI.
German multinational tech company Bosch's manufacturing plant in Toluca

Mexico ranks No. 11 in the world for attracting foreign investment

1
According to a UN report, Mexico has held steady as an attractive FDI destination, even as global investment is shrinking.
A screwworm fly, possibly

Fight against screwworm ramps up with reopening of sterile fly plant in Chiapas

0
Sterile flies were key to Mexico's past success in exterminating screwworm. Now that the pest is back, the US is offering $21 million to reopen the production facility.