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Mexico’s economy grows 0.8% in the second quarter, less than estimated

‘There goes’ Mexico’s economy… During the second quarter of 2023the national Gross Domestic Product (GDP) grew 0.8 percent compared to the prior quarter, according to revised figures from the National Institute of Statistics and Geography (Inegi) posted this Tuesday.

The figure is lower than the timely estimate that the Inegi published in July, when it calculated that the Mexican economy had grown 0.9 percent at a quarterly rate.

GDP recovery after the pandemic has produced quarterly growth figures of around 1 percent in the last 10 quarterswith the exception of the third quarter of 2021, when it contracted 1.1 percent.

Quarter GDP growth compared to the previous quarter
1T22 1%
2Q22 1.1%
3Q22 0.9%
4Q22 0.6%
1T23 1%
2Q23 0.8%

By activities, the primary sector (which includes agriculture and livestock activities): advanced 0.7 percent; the secondary sector (industry related): up 1.2 percent, and the tertiary sector (which has to do with services, such as tourism): gained 0.7 percent.

How much did Mexico’s economy grow at a quarterly rate?

The Inegi reported that the Mexican GDP advanced 3.6 percent between April and June compared to the same period, but in 2022, a figure similar to your timely estimate.

Mexico’s economy has grown at annual rates above 3 percent at least from the third quarter of 2022.

The activities that advanced the most at an annual rate were the high schoolswith a growth of 3.9 percent.

The ‘optimism’ for the economy of Mexico

Enrique Quintana, Vice President and General Editorial Director of The financial, He pointed out in his column on August 23 that there are economic signs that suggest an upward trajectory for Mexico’s GDP.

The columnist also stressed growth in the value of construction companies as a factor to take into account, in addition to the impact of the relocation of the production chains, the so-called nearshoring, whose effect, he added, still seems to be limited.

“If at the takeoff of the nearshoring We are already seeing increases in construction and purchase of capital goods like the ones I mentioned, we can imagine the enormous volumes that these variables will acquire when the investments of various projects are finalized”, he commented.

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