Mexico GDP Growth Weakest Since 2014

The Mexican economy advanced 1.8 percent year-on-year in the second quarter of 2017, in line with the first estimate but well below a 2.8 percent expansion reported in the previous period. It is the lowest growth rate since the second quarter of 2014, mainly due to a slowdown in output of services and agriculture while industrial sector shrank, final estimates showed. On a quarterly basis, the GDP grew 0.6 percent, in line with an earlier figure but slightly lower than a 0.7 percent increase in the first quarter of 2017.

The services sector rose 3.2 percent, matching preliminary estimate and easing from a 3.7 percent rise in the previous quarter. Activities slowed for: internal trade (2.6 percent vs 3.4 percent in Q1); transportation (3.6 percent vs 4.1 percent); business support services and waste management and remediation (3.1 percent vs 4.1 percent); professional, scientific and technical (3 percent vs 8 percent); corporate services (3.2 percent vs 5.3 percent) and real estate activities (1.8 percent vs 2.4 percent). Meantime, education tumbled (-0.5 percent vs 3.1 percent). Conversely, output expanded faster for restaurants and hotels (7.6 percent vs 0.5 percent); recreation and culture (5 percent vs 2.3 percent) and financial and insurance (9.9 percent vs 9.5 percent).

Industrial production tumbled 1.1, compared to a 1 percent fall in the previous release and a 0.5 percent expansion in the previous quarter. Production was dragged down by mining (-8.5 percent vs -11.6 percent); construction (-1.5 percent vs 1.5 percent) and utilities (-1.9 percent vs -0.5 percent). Meantime, the manufacturing sector rose at a slower pace (2 percent vs 5.2 percent).

The agricultural sector advanced 0.7 percent, in line with the first figure but below a 6.4 percent growth in the previous quarter.

On a quarterly basis, the economy advanced 0.6 percent, slightly below 0.7 percent in the previous period and in line with the preliminary estimate. Yet, it is the weakest expansion in one year.

Mexico GDP Growth Weakest Since 2014

INEGI | Luisa Carvalho |
8/22/2017 5:10:04 PM