Key facts
- Mexico's economy grew by 1.5% in the second quarter.
- This is the fastest economic growth for Mexico since late 2020.
- Mexico's economy contracted by 0.6% in the first quarter.
- Kia will invest $649 million in Mexico.
- The investment is for electric vehicle production and sales.
- Kia will start production with the EV3 model in August.
- The investment aims to boost domestic production.
- The investment aims to reduce reliance on imports.
- U.S. protectionist policies are a factor in Kia's decision.
Mexico's economy demonstrated robust growth in the second quarter, expanding by 1.5%. This figure represents the fastest pace of economic expansion recorded in the country since the final quarter of 2020. The strong performance in Q2 serves as a significant rebound from the 0.6% contraction experienced in the first quarter of the year. This growth rate also surpassed the expectations previously set by economists.