Mexico's economy shrank more than expected in the fourth quarter on a sequential basis, preliminary data from national statistics agency INEGI showed on Thursday, marking its first quarter-on-quarter contraction in over three years.

Mexico’s economy posted the first quarterly contraction since 2021, shrinking much more than expected on weaker domestic demand and uncertainty over tariffs by the US, the country’s top trade partner.

Mexico's economy likely contracted from October to December, marking the first quarterly decrease in more than three years, a Reuters poll showed on Wednesday.