Despite high-interest rates and slowing inflation, Mexico’s economy expanded by 3.3% in the third quarter of 2023, according to INEGI.
Primary activities increased 5.3%, secondary activities 4.5%, and tertiary activities 2.5%.
The growth fell short of the expected 3.5% but still marked the tenth consecutive quarter of growth.
Comparing quarters, the economy expanded 0.9% from July to September. Specifically, primary sectors grew 3.2%, secondary sectors 1.4%, and tertiary sectors 0.6%.
From January to September, the economy has risen 3.5%. INEGI will release final third-quarter GDP data on November 25, 2023.
The Ministry of Finance predicts a 2.5-3.5% growth range for 2023 and 2024. As for Hurricane Otis, the Ministry hasn’t yet assessed its impact on GDP.
However, experts expect minimal effects.
Mexico’s economy shows solid growth despite challenges like high-interest rates. Nearshoring plays a big role in investment attraction.
The steady growth across sectors points to a well-rounded economy. The Ministry’s positive forecasts for 2023 and 2024 add confidence.
Mexico’s economic resilience could be a magnet for more global investors. This sustained growth also implies more job opportunities, improving social conditions.
Given this track, it’s reasonable to expect Mexico to maintain its growth momentum in the coming quarters.
Background
Continued growth in Mexico is notable, given its past economic challenges. The country faced significant recession risks just a few years ago.
Yet, it now sees ten consecutive quarters of growth. This is a clear sign of economic resilience.
The role of nearshoring cannot be underestimated. Companies are relocating closer to the U.S., boosting Mexico’s secondary activities.
Government policies, like grants and credits, are also fueling consumption. This growth trend, if sustained, could make Mexico an even stronger economic player in the region.