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    Home » Mexico’s Economic Slowdown in Q4 2023
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    Mexico’s Economic Slowdown in Q4 2023

    February 22, 20241 Min Read
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    In the fourth quarter of 2023, Mexico experienced a slowdown in its economy due to decreases in industrial output and agricultural production, partially offset by gains in services.

    Key Points from the Report

    • Gross domestic product (GDP) expanded by 0.1% from the previous quarter in seasonally adjusted terms.
    • Services saw growth of 0.3%, while industrial production slipped by 0.1% and agricultural production was 1% lower.
    • Despite the slowdown, economic activity is expected to pick up in 2024, with government spending playing a role, especially in an election year.

    Outlook for 2024

    Economists at Morgan Stanley anticipate a re-acceleration of economic activity early in 2024. Factors contributing to this include fiscal expansion, minimum wage hikes, resilient credit, remittances, investments related to nearshoring, and continued growth in the U.S.

    Year-End Figures

    • Fourth-quarter GDP increased by 2.5% compared to the same period the previous year.
    • Full-year growth for 2023 stood at 3.2%, down from 3.9% in 2022.

    Despite the recent challenges, Mexico’s economy remains on track for growth and improvement.

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