Mexico’s economy shrinks in Q4 2024 for first time in 3 years
(MENAFN) Mexico's Economy contracted in the final quarter of 2024, marking the first quarterly decline in three years, according to preliminary figures released by the national statistics agency INEGI on Thursday. The country's gross domestic product (GDP) fell by 0.6 percent in the fourth quarter compared to the same period in 2023. This contraction was worse than the market's expectations, which had anticipated a decline of just 0.2 percent.
The downturn was mainly driven by a sharp 8.9 percent drop in the primary sector, which includes industries such as farming, fishing, and mining. Additionally, the secondary sector, which encompasses manufacturing activities, saw a decline of 1.2 percent, contributing further to the overall contraction. These sectors were the primary contributors to Mexico's shrinking economy during the final months of 2024.
Despite the quarterly slump, Mexico's economy grew by 1.3 percent on an annual basis in 2024, compared to the previous year. This yearly growth indicates that the economy performed better throughout the rest of the year, even as the fourth quarter showed a downturn.
The contraction came amid increasing concerns about potential tariff threats from the US, particularly following President Donald Trump's inauguration. However, Mexican President Claudia Sheinbaum expressed confidence that the country would be able to avoid such measures, stating that even if tariffs were imposed, Mexico had a contingency plan in place.
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