Mexico GDP Expands 2.5% YoY in Q2

The Mexican economy advanced 2.5 percent year-on-year in the second quarter of 2016, compared to a preliminary reading of 2.4 percent and better than a 2.4 percent growth rate in the previous two quarters. Production in industry and agriculture expanded at a faster pace while the services sector grew less due to a slower expansion in domestic demand.

Industrial production went up 1 percent, compared to a 0.3 percent growth in the previous period. Manufacturing (1.6 percent compared to 1 percent in Q1), construction (3 percent compared to 1.7 percent in Q1) and utilities (6.4 percent compared to 1.9 percent in Q1) grew at a faster pace while the mining sector declined 4.3 percent, following a 3.2 percent drop in the previous period. 

The services sector expanded 3.2 percent (3.5 percent in Q1) mainly due to a slowdown in internal trade (2.3 percent from 3.6 percent in Q1) and real estate (1.8 percent from 2.2 percent in Q1) while transportation (2.9 percent from 2.7 percent in Q1) and financial and insurance activities (7.2 percent from 6.7 percent in Q1) grew at a faster pace. 

The agricultural sector advanced 3.8 percent, compared to 3 percent in the previous period.

On a quarterly basis, the economy shrank 0.2 percent, compared to preliminary estimates of a 0.3 percent fall. Yet, it is the first contraction in three years. 

Mexico GDP Expands 2.5% YoY in Q2

INEGI | Joana Taborda |
8/22/2016 4:17:52 PM