Mexico Annual GDP Growth Strengthens in Q4

The Mexican economy expanded 1.8 percent year-on-year in the fourth quarter of 2017, up from a 1.5 percent growth in the previous period. Output rose faster for services and agricultural activities while declined for industrial production, preliminary estimates showed.

The services sector advanced 2.6 percent, following a 2.4 percent increase in the third quarter and agricultural activities grew 4.2 percent, much higher than a 0.9 percent rise in the previous period. Meantime, industrial production fell 0.7 percent, the same pace as in the previous period.

In 2017, the economy expanded 2.1 percent, slowing down from 2016 when it grew 2.9 percent. Services were the main driver of growth, expanding 3.1 percent while industrial production contracted 0.6 percent due to drop in oil and gas output and the impact of government budget cuts on construction activity. The central bank expects the country's GDP to grow between 2 percent and 3 percent in 2018.

On a quarterly basis, the GDP expanded 1 percent, recovering from a 0.3 percent contraction in the previous quarter. It was the fastest growth in a year.

Mexico Annual GDP Growth Strengthens in Q4

INEGI | Luisa Carvalho |
1/30/2018 5:55:17 PM