Despite ongoing uncertainty over the US government’s commitment to NAFTA, GDP forecasts for Mexico have jumped. This follows a positive national accounts release for Q4 2016. Moreover, going into 2017, trade data has been upbeat: in March, total exports soared by 14.1% (y-o-y) in value terms, helped by broad-based gains in manufacturing exports. This comes on the back of a weak peso. Production disappointed, though, with manufacturing contracting by -0.1% and -0.3% in February and March respectively on a seasonally-adjusted basis. On the CPI front, inflation has been trending noticeably higher, prompting Banxico to hike rates at its monetary policy meeting on May 18.