Mexico Annual GDP Growth Weakest Since 2013

The Mexican economy grew 1.5 percent year-on-year in the fourth quarter of 2017, below a preliminary estimate of 1.8 percent and compared to an upwardly revised 1.6 percent in the previous period. It was the slowest expansion since the last quarter of 2013, as the industrial activity contracted further and services rose at the same pace. Considering full 2017, the economy grew 2 percent, below 2.1 percent in the previous estimate and 2.9 percent in 2016. It is the lowest growth rate since 2013.

The services sector advanced 2.4 percent, below the preliminary estimate of a 2.6 percent growth, but at the same pace as in the previous period. Output increased less for financial services and insurance (5.4 percent vs 8 percent); real estate activities (0.7 percent vs 1.4 percent); information and communication (3.9 percent vs 6.2 percent); health and social activities (1.9 percent vs 2.5 percent) while it fell for professional, scientific and technical activities (-5.8 percent vs -5.6 percent) and business services (-1.6 percent vs -0.5 percent). In contrast, faster growth was reported for wholesale trade (4.9 percent vs 4 percent in Q3); retail trade (2 percent vs 0.2 percent); transportation (2.7 percent vs 2.6 percent) and cultural and sports activities (3.2 percent vs 2.4 percent).

Industrial activity contracted 1 percent, compared to a 0.7 percent fall in the preliminary estimate and more than a downwardly revised 0.6 percent drop in the third quarter. Mining continued to shrink (-8.8 percent vs -10.7 percent) due to lower oil output (-9.8 percent vs -12.3 percent). Also, contraction was reported for construction (-1.3 percent vs -1.1 percent) and utilities (-0.6 percent vs -0.4 percent) while the manufacturing sector rose at a slower pace (1.8 percent vs 3.4 percent).

The agricultural sector grew 4.2 percent, in line with the first figure and better than an upwardly revised 2.1 percent rise in the prior period.

On a quarterly basis, the GDP advanced 0.8 percent, below an initial estimate of a 1 percent growth, while rebounding from a downwardly revised 0.2 percent fall in the previous quarter. Still, it was the strongest expansion in four quarters.

Mexico Annual GDP Growth Weakest Since 2013

INEGI | Luisa Carvalho |
2/23/2018 4:22:23 PM