Mexico Annual GDP Growth Revised Down to 2.6% in Q2

The Mexican economy expanded 2.6 percent year-on-year in the second quarter of 2018, below a preliminary figure of 2.7 percent and following an upwardly revised 1.4 percent growth in the previous quarter. It was the strongest growth rate since the first quarter of 2017, driven by services and industrial sector.

The services sector advanced 3.3 percent, down from a 3.4 percent in the preliminary estimate and higher than a 2.1 percent expansion in the prior period. Faster growth was recorded in wholesale trade (3.6 percent compared to 2.4 percent in Q1); retail trade (3.6 percent compared to 3.2 percent); real estate activities (2.3 percent compared to 1.2 percent); financial services and insurance (4.9 percent compared to 4.4 percent); information and communication (7.6 percent compared to 3.0 percent) and transportation (3.7 percent compared to 2.8 percent). Also, output rebounded for business services (1.4 percent compared to -3.2 percent) and education (1.8 percent compared to -0.8 percent). In contrast, production fell further for cultural and sports activities (-1.2 percent compared to -0.1 percent) and growth slowed for social assitance (2.3 percent compared to 3.0 percent).

Industrial activity rebounded to 1.3 percent from a 0.8 percent contraction in the first quarter of the year and below a 1.4 percent expansion in the preliminary figure. Manufactury sector advanced 3.3 percent, after shrinking 0.2 percent in the previous period. Additionally, output rose faster for construction (2.5 percent compared to 1.5 percent) and utilities (1.9 percent compared to 0.8 percent). Meanwhile, mining contracted 6.1 percent, the same pace as in the prior quarter.

The agricultural sector grew 1.8 percent, in line with the preliminary estimate and well below a 5.4 percent expansion in the prior period. It was the weakest growth in the agricultural sector since the first quarter of 2016.

On a quarterly basis, the economy shrank 0.2 percent, more than a preliminary estimate of a 0.1 percent contraction and after expanding 1.0 percent in the first quarter.

Mexico Annual GDP Growth Revised Down to 2.6% in Q2

INEGI | Stefanie Moya |
8/24/2018 1:35:40 PM