Key facts
- Mexico's economy grew 1.5% in the second quarter.
- This marks the fastest quarterly growth since late 2020.
- The expansion followed a 0.6% contraction in the first quarter.
- Primary activities, including farming, fishing, and mining, led the growth with a 3.3% increase.
- Year-on-year growth reached 2.2%.
Mexico's economy experienced a significant rebound in the second quarter, growing by 1.5% according to preliminary estimates from the national statistics agency INEGI. This marks the fastest pace of expansion since late 2020 and follows a 0.6% contraction in the first quarter. The growth exceeded economists' expectations of a 1.3% increase.
All three main sectors of the economy contributed to the expansion. Primary activities, which include farming, fishing, and mining, saw the most substantial growth at 3.3% sequentially. The secondary sector, comprising manufacturing and construction, increased by 1.6%, while services activity grew by 1.5%.
On an annual basis, the Mexican economy grew 2.2% in the second quarter, also surpassing the 1.5% year-on-year rise anticipated by economists. Analysts from Itau noted that the expected improvement reflects a rebound in industrial activity and continued, albeit moderate, growth in services.
The International Monetary Fund had previously lowered its growth forecast for Mexico to 1.2% for the year, but the government's Ministry of Finance remains more optimistic, projecting growth between 1.8% and 2.8%.