Mexico's gross domestic product fell 0.6 percent in the first quarter compared with the prior period, according to final Inegi data released Friday. The contraction was smaller than expected and revives debate over possible further rate cuts by Banxico.
The National Institute of Statistics and Geography reported that GDP contracted 0.6 percent quarter on quarter between January and March. The final figure beat the preliminary reading of minus 0.8 percent and analyst expectations.
Compared with the same period of 2025, GDP grew 0.2 percent. The decline was concentrated in agriculture, manufacturing and services.
Banxico cut its key rate to 6.50 percent in early May in a divided three-to-two vote. The board then signaled the end of its two-year monetary easing cycle.
Analysts such as Alberto Ramos of Goldman Sachs noted that the threshold for additional cuts is not high if growth remains weak. Banxico will release its next quarterly report on May 27.
