Photo: Mexican economy
Mexico’s gross domestic product (GDP) grew 1.7 percent in the first half of this year, compared to the same period in 2013, the National Statistics Institute, or INEGI, said Thursday.
Latin America’s second-largest economy grew 1.6 percent in the second quarter, marking a slowdown from the first quarter, when GDP expanded at a 1.9 percent annualized rate, the INEGI said.
The Finance Secretariat will announce later in the day whether it plans to revise its 2014 economic growth forecast of 2.7 percent based on the latest GDP reading.
GDP expanded at a 1.04 percent rate in the second quarter, without adjusting for seasonal factors, compared to the first quarter.
The primary sector of the economy was bolstered in the April-June period by agriculture, especially higher production of apples, tomatoes, chilis, foraging corn, beans, coffee, avocadoes and wheat.
The service sector saw strong growth in mass media, up 4.7 percent; temporary housing, which grew 4 percent; real estate, up 2.3 percent; and trade, which expanded at a 1.8 percent rate.
The secondary sector posted growth in two of its four components, with manufacturing expanding 2.4 percent and electricity generation, transmission and distribution, and water and gas distribution growing 1.4 percent.
Mining contracted 1 percent, while construction experienced a 0.60 percent pullback, a more moderate rate than in the prior quarter, the INEGI said.
Mexican officials and financial institutions expect a better economic performance in the second half of this year, thanks to strength in exports and increased government spending on public works projects.
The Bank of Mexico revised its GDP forecast downward last week from a range of 2.3 percent to 3.3 percent to a 2 percent to 2.8 percent range.
The Mexican government revised its 2014 economic growth estimates downward in May from 3.9 percent to 2.7 percent.
Mexico’s GDP grew just 1.1 percent in 2013 due to a sharp slowdown in the first half of the year.