MEXICO CITY (Reuters) – Mexico’s economy likely expanded for a third consecutive quarter between April and June, although at a lower rate due to the economic fallout of Russia’s war in Ukraine and COVID-19 lockdowns in China, a Reuters poll showed Monday.
Gross domestic product (GDP) is expected to have expanded 0.8% in the second quarter from the first quarter, in seasonally adjusted terms, according to the median forecast of 12 analysts.
Latin America’s second-largest economy grew 1% in the first quarter.
“The result would be favorable and driven mainly by the strength of external demand,” Grupo Financiero Banorte said in an analysts’ report.
“However, in our opinion, the outlook deteriorated over time, hit by greater external shocks, as well as a moderation in domestic momentum,” Banorte said.
Mexico’s economy is forecast to have grown 1.4% year-on-year in the second quarter, the poll showed, down from 1.8% growth in the first quarter.
“We expect activity to slow during the rest of 2022, giving a cumulative GDP growth of 1.5% for 2022,” analysts from Citibanamex noted.
Mexico’s national statistics agency INEGI is scheduled to publish the second-quarter preliminary GDP data on Friday morning.
(Reported by Noe Torres; Additional reporting by Gabriel Burín in Buenos Aires; Writing by Valentine Hilaire; Editing by Anthony Esposito and Lisa Shumaker)
