Mexico’s economy contracted 0.6% quarter-over-quarter in the first quarter, slightly better than expectations for a 0.8% decline but marking a sharp reversal from the previous quarter’s 0.9% growth. On an annual basis, GDP growth slowed dramatically to 0.2% from 1.8%, though it came in marginally above forecasts of 0.1%. The data points to a significant loss of economic momentum, highlighting weakening domestic and external demand conditions.