Mexico's economic momentum saw a reversal in the fourth quarter of 2024, as the country's Gross Domestic Product (GDP) experienced a contraction, halting at -0.6%. This marks a significant shift from the third quarter, when the GDP had shown a positive growth of 1.1%.
The updated data, released on January 30, 2025, paints a stark contrast between the two consecutive quarters. The third quarter had witnessed economic expansion, largely driven by robust domestic activities and recovering external demand. However, the fourth quarter’s contraction points to potential headwinds, which might include external economic pressures, changes in trade dynamics, or internal economic adjustments.
This quarter-over-quarter comparison highlights the volatility and challenges faced by the Mexican economy during the latter half of 2024. Analysts will continue to scrutinize these fluctuations as they assess implications for economic policies and future growth prospects.