Mexico’s Economic Growth Confirmed for 2023
With less than two months remaining in the year, Mexico’s economic growth is projected at 3.3%.
During the third quarter of the year, Mexico’s Gross Domestic Product (GDP) recorded a 1.1% economic growth compared to the previous period, confirming the positive pace and resilience observed throughout 2023, according to revised data from INEGI.
The figure was better than the initially estimated 0.9% and marked eight consecutive quarters with positive data for the first time since the third quarter of 2013.
The economic growth in Mexico during these months has been driven by internal factors such as consumption, boosted by a strong labor market, along with remittances at historic highs, resulting in increased household spending.
“These figures confirm a better-than-expected start to the second semester, thanks to the still-strong labor market conditions, the gradual decline in inflation, and the increase in public and private investment,” wrote Andrés Abadia, Chief Economist for Latin America at Pantheon Macroeconomics.
Mexico’s Economic Growth
In terms of economic activity sectors, the one with the highest quarterly growth between July-September was primary or agricultural activities, with a 2.6% quarterly advance, marking its second consecutive period of growth.
However, the figure was revised down from the initial 3.2%.
On another note, secondary or industrial activities grew by 1.3% on a quarterly basis, marking ten quarters with positive data but also revised down from the initial 1.4%.
Meanwhile, tertiary or service activities concluded the third quarter with a 0.9% advance, better than the expected 0.6%, marking eight periods of growth.
In the annual comparison, Mexico’s economic growth expanded by 3.3%, unchanged from the preliminary estimate published a month ago.
By activity group, primary activities advanced by 5.5%, industry by 4.4%, and services by 2.6% on an annual basis.
“The INEGI confirms that the economy grew by 3.3% in 3Q driven by primary and secondary activities. Construction continued to be the driving force for industry due to the acceleration of public spending to complete federal government infrastructure projects,” wrote Alfredo Coutiño, Director for Latin America at Moody’s Analytics, on his X account.
In the cumulative January-September period, Mexico’s GDP shows a growth of 3.4% compared to the same period last year.
Also read: The Mexican economy in 2023 slowed down with a 0.1% decline in October.
