Mexican economy grows for third quarter in a row, beats forecast

MEXICO CITY (Reuters) – Mexico’s economic system expanded 1% between April and June from the prior three month interval, beating forecasts and marking the third consecutive quarter of progress, a preliminary estimate from nationwide statistics company INEGI confirmed on Friday.

Gross home product (GDP) was anticipated to have grown 0.8% in seasonally-adjusted phrases within the second quarter, a Reuters ballot of analysts discovered earlier this week.

A breakdown of the GDP figures confirmed a 1% quarterly bounce within the tertiary sector, which covers providers, as tourism continued to gasoline restoration in Mexico, economists stated.

Secondary actions, which embrace manufacturing, and agricultural output each rose 0.9% within the quarter, the info confirmed.

Analysts at Capital Economics revised up their 2022 progress forecast for Mexico by 0.5 share factors to 2.3% following the info, however predicted leaner occasions lay forward.

“The large image is that weak point within the U.S. and tight coverage at dwelling will weigh on progress over the approaching quarters and Mexico’s restoration will proceed to lag behind these in the remainder of Latin America,” they stated in a analysis notice.

Andres Abadia, Chief LatAm Economist at Pantheon Macroeconomics, stated the figures confirmed Mexico’s economic system had confirmed “resilient.”

“Enhancing manufacturing exercise, still-solid—albeit slowing—remittances from the U.S., and progressively easing inflation pressures, significantly from late Q3 onwards, probably will stop a protracted downturn over the second half of the 12 months,” he stated.

Mexico’s President Andres Manuel Lopez Obrador stated earlier this week he was optimistic concerning the economic system, telling reporters he dominated out a recession subsequent 12 months, regardless of a gloomier outlook for the well being of the worldwide economic system.

12 months on 12 months, the economic system expanded 2.1% within the second quarter, the INEGI knowledge confirmed.

(Reporting by Isabel Woodford Enhancing by Frank Jack Daniel and Mark Potter)