Mexico’s economy grew 1.1% in 1st quarter, 3.8% year on year

MEXICO CITY (AP) — Mexico’s economy grew by 1.1% in the first quarter of 2023, bringing growth to an annualized rate of 3.8% compared to the same period of 2022, Mexico’s National Statistics Institute said Friday.

The institute said growth was spurred by an expansion in industry and services, which offset a 3.2% drop in agriculture and mining.

It marked the sixth consecutive quarter of growth since the coronavirus pandemic, during which Mexico suffered a severe drop in output.

Mexico’s economy has recovered from the pandemic, but the effects of high domestic interest rates and stubborn inflation have acted as a drag on growth. Mexico’s central bank has raised interest rates to 11.25% and inflation remains high, at 6.85%.

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