Mexico: Growth weakens in Q3 amid broad-based deceleration
December 14, 2012
In the third quarter, GDP expanded 3.3% over the same period the previous year. The reading was in line with data released by the statistical institute on 16 November and represents the lowest growth rate seen in five quarters.
The moderation was the result of slower pace of expansion across the board. Growth in total consumption slowed to 2.0% in the third quarter, down from 3.2% in the second quarter, reflecting a deceleration in both private consumption (Q2 2012: +3.4% year-on-year; Q3: +2012: 2.2% yoy) and government spending (Q2: +2.2% yoy; Q3: +0.6% yoy). In addition, growth in fixed investment slowed to 4.8% in the third quarter, down from 6.2% in the second.
Meanwhile, the external sector's net contribution to overall growth improved a notch, inching up from 0.5 percentage points in the second quarter to 0.6 percentage points in the third. Exports slowed to a 2.4% expansion in the third quarter (Q2: +6.4% yoy), while imports moderated to a 0.5% increase (Q2: +4.8% yoy).
A quarter-on-quarter comparison corroborates the moderation suggested by annual figures, as the economy grew 0.5% in seasonally adjusted terms in the third quarter, which came in below the 0.8% expansion recorded in the second quarter.