Mexico’s Economy Sees Moderate Growth in First Half of 2024

In the first half of 2024, Mexico’s economy grew by 1.8% year-over-year, just under the initial 1.9% estimate, driven by the services sector.

The National Institute of Statistics and Geography (INEGI) revised these figures downward on Thursday.

The commerce and services sectors, crucial to the economy, grew by 2.3%. Meanwhile, industrial activities increased by 1.4%. In contrast, the agricultural sector saw a decline of 2.6% during this period.

According to seasonally adjusted data, Mexico’s GDP rose by 1.4% from January to June compared to the same period in 2023. The economy gained momentum with a 1.0% annual increase in the second quarter.

Following the data release, financial analysts from Banorte Group reiterated their full-year growth forecast for Mexico at 1.9% for 2024.

Despite some expected challenges in the latter half of the year, bright spots in certain sectors may support overall growth.

Specifically, the construction sector is showing promise, particularly in civil engineering projects.

Additionally, the summer holiday period boosted the services sector, likely impacting future economic data positively.

As the second-largest economy in Latin America, after Brazil, Mexico heavily depends on the economic cycles of the United States, its major trade partner.

In 2023, Mexico’s GDP increased by 3.2%. Government estimates suggest that the local economy could grow between 2.5% and 3.5% in 2024.

This steady economic growth demonstrates Mexico’s resilience and adaptability amid global market fluctuations and domestic challenges.

The country’s cautious yet optimistic economic outlook remains a key narrative as it navigates its path forward.