Defying fears over Trump, Mexico first-quarter economic growth holds steady

5/22/2017 Reuters

4350685550_dbd28c7e50Increased farm output and services led Mexico’s economy to grow at the same clip in the first quarter as in the previous three-month period, shrugging off fears that Donald Trump’s presidency would quickly cause havoc to Mexican exports and investment.

The country’s gross domestic product grew at a rate of 0.7 percent, the same pace as in the fourth quarter, according to seasonally adjusted data from national statistics agency INEGI on Monday.

The election of Donald Trump last year raised the specter of recession in Mexico as he threatened to shred the North American Free Trade Agreement (NAFTA) and pursue policies that could hurt the Mexican economy. This sent the country’s peso into a tailspin and prompted some economists to lower growth forecasts.

Nonetheless, slow progress in starting NAFTA talks and an overall softening of rhetoric about U.S. companies that invest in Mexico have calmed nerves for now.

Compared with the first quarter of 2016, GDP expanded 2.8 percent.

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