Mexico GDP Growth Beats Expectations

The Mexican economy advanced 2.2 percent year-on-year in the three months to June, slowing from an upwardly revised 2.6 percent expansion in the first quarter but above market forecasts. The growth was boosted by the services sector while mining shrank for the sixth straight quarter.
Joana Taborda | 8/20/2015 2:49:22 PM
The services sector rose 3.1 percent, the highest gain since the last quarter of 2012. Among services, wholesale and retail trade increased 3.1 percent, real estate rose 3.3 percent, transport, warehousing and communications went up 3.1 percent and financial services and insurance advanced 3.3 percent.

The industrial sector grew a meager 0.5 percent, the slowest expansion since 2013, dragged down by a 7.6 percent fall in mining production. Manufacturing grew at a slower 3 percent (3.2 percent in the first quarter) and construction expanded 2.8 percent (4.4 percent in the first quarter).

Agricultural production also rose at a slower 2.7 percent, following a 6.7 percent increase in the first three months of the year.

On a quarter-on-quarter basis, the economy expanded 0.5 percent in the three months to June, slightly up from a 0.4 percent rise in the previous period. 

Considering the first six months of the year, the economy expanded 2.4 percent. Earlier this week, the central bank cut its 2015 growth forecasts to between 1.7 percent and 2.5 percent from 2 percent to 3 percent. 

Mexico GDP Growth Beats Expectations