Mexico: Q1 GDP likely to substantially decelerate to 0.3% - TDS

Mexico’s Q1 GDP is expected to show a substantial deceleration to 0.3% Q/Q from the previous 1.1% thanks to the construction and the overall deceleration in the industrial sector, according to analysts at TD Securities.

Key Quotes

“This data will however be more of a sideshow this week as the market awaits Banxico, though it does highlight the impact that high rates continue to have, as well as the impact of economic uncertainty from ongoing NAFTA negotiations and the recent election.”

“The latter is set to lift towards the end of the year with the fiscal planning cycle, while the former has picked up positive momentum in the near term.”