The 1.0% q/q rebound in Mexican GDP in Q4 was larger than expected but needs to be viewed alongside the -0.3% q/q contraction in Q3. While a stronger US economy will provide a prop to growth this year, this will be largely offset by other headwinds including election uncertainty and the lagged effects of previous policy tightening. We expect growth to flat-line at around 2.2% in 2018.
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