Mexico: GDP growth accelerates in third quarter
November 21, 2014
In the third quarter, GDP increased 2.2% over the same period last year, which marked an acceleration over the 1.6% expansion registered in the second quarter. Nonetheless, Q3’s expansion fell short of the 2.3% increase the markets had expected.
Q3’s improvement was broad-based and reflected faster growth in agriculture (Q3: +7.3% year-on-year; Q2: +2.5% yoy), which marked the fastest pace of expansion since the fourth quarter of 2012. In addition, the industrial sector grew a healthy 2.0% in Q3, which came in above the 1.1% rise observed in Q2. Construction showed a meaningful improvement, bouncing from a 0.6% contraction in Q2 to a strong 4.0% increase in Q3. Services also increased 2.0% in Q3, which was a notch up the 1.9% rise recorded in Q2.
A quarter-on-quarter comparison showed that GDP increased a seasonally-adjusted 0.5% in Q3, which came in below the revised 0.9% expansion observed in Q2 (previously reported: +1.0% qoq). According to analysts, the Mexican economy will experience softer growth in the second half of the year.
Author: Ricardo Aceves, Senior Economist