ISTANBUL

The economy of Mexico shrank in the last quarter of 2024, marking the first quarterly contraction in three years, the national statistics agency INEGI reported in a preliminary estimate on Thursday.

The gross domestic product (GDP) of the country decreased by 0.6% in the fourth quarter of the last year, compared to the same period of 2023.

The market expectation for the period was a decline of 0.2%.

According to INEGI, an 8.9% quarterly decline in the primary sector, which includes farming, fishing, and mining, drove the decline while secondary or manufacturing activities fell by 1.2%.

On a yearly average, however, Latin America's second-largest economy grew by 1.3% in 2024 compared to the previous year.

The decline came at a time when Trump's tariff threats intensified after his inauguration.

Mexican President Claudia Sheinbaum said Wednesday that she was confident that her country could avoid the measures.

“We don’t think it will happen, and if it does happen, we also have our plan,” she said.