Mexico’s economy expanded more in the third quarter than preliminary data suggested, lifted by surging exports to the US and strong consumer spending.
Official data released Friday showed gross domestic product expanded 1.1% in the July-September period from the previous quarter, above the 0.8% median estimate by economists in a Bloomberg survey and also the 0.9% initial reading reported last month. From the same period a year prior, GDP grew 3.3%, above the 3.2% forecast.
Latin America’s second-largest economy has benefited from the strength of the US market and company investments in operations that serve Mexico’s northern neighbor — a process known as nearshoring. Consumer demand and a robust labor market have helped boost growth. President Andres Manuel Lopez Obrador is also rushing to complete a series of projects, including a train through the country’s southeast region, before his term ends next year.
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Double-digit borrowing costs and waning government spending, however, are expected to begin weighing on growth. Economists in the latest Citibanamex survey see Mexico’s GDP expanding 3.4% this year and 2.1% in 2024.
--With assistance from Rafael Gayol.
