Mexico Economic Growth Slows
Mexico’s economy expanded at an annual rate of about 3% in the first quarter as growth cooled because of weaker manufacturing, especially in the auto sector, according to preliminary estimates released by the Finance Ministry Monday.
Gross domestic product had expanded at a 4.9% pace in the final quarter of 2004. However, data for the first quarter of 2005 was distorted by the Holy Week holiday, which fell in March instead of April as it did last year.
The official estimate of growth for the quarter will be released May 17.
“After an exceptionally strong fourth quarter, this looks consistent with the kind of slowdown that was expected,” said Michael Hood, an economist at Barclays Capital.
Officials said growth had since picked back up and should result in full-year GDP expansion near the forecast of roughly 4% made by Wall Street analysts and the government.
“Second-quarter growth is above the medium-term trend and in line with the 3.8% estimate we have,” Finance Ministry chief economist Alejandro Werner told reporters.
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