Mexico’s GDP grows 1.9% year-on-year in the second quarter

Mexico’s economy grew 1.9% year-on-year in the second quarter of 2022, the national statistics institute, INEGI, reported this Friday.

The preliminary estimate of the behavior of the Mexican Gross Domestic Product (GDP) from April to June of this year showed “an increase of 1% compared to the real immediate previous quarter”, and at 12 months “an increase of 1.9%” in seasonally adjusted figures, pointed out the INEGI.

Read also: Check out our coverage on Mexico

At “estimated GDP figures”, annual growth was 2.1%, detailed the INEGI.

By activities, the increase was 3.3% in the mining, manufacturing, construction and electricity sectors, 1.4% in agriculture and livestock, and 1% in commerce and services.

In the first quarter of the year, Mexico’s GDP grew 1.8%, while in 2021 it increased to 5% after collapsing 8.4% in 2020 hit by the coronavirus pandemic.

The war in Ukraine has prompted the government to lower growth expectations for 2022 from an initial forecast of 4.1% to 3.4%.

But in June the Bank of Mexico (Banxico, central) cut its forecast for economic growth this year to 2.2% from 2.4% previously forecast.

The institution considers that although the Mexican economy is facing a more favorable environment in terms of the pandemic, which would boost domestic demand, elements such as the behavior of oil production “have been revised downwards.”

Banxico’s forecast for 2022 is higher than the 1.8% estimated by private analysts but less optimistic than the 3.4% expected by the government.