Mexico's Q3 GDP Revised Higher to 1.6%

• Growth in gross domestic product (GDP) for Mexico was revised slightly higher for  its September quarter (Q3 2024), largely owing to stronger services activity, statistic agency INEGI  said on Friday.

• The economy grew at an annualized 1.6% rate in Q3, up from 1.5% growth in the first estimate reported 30 October. Still, growth in Q3 marked an easing from 2.2% annual growth recorded in Q2 2024.

• Comprising 60% of the economy, services sector growth was revised to an annualized 2.1% in the final estimate, from 1.9% in the preliminary estimate. The rebound in services in Q3, up from 1.5% in the June quarter, might be due to the delayed effects of increased public spending from the Mexican electoral process and completed works from the previous administration, Citibanamex said.

• While the industrial component, comprising 32% of GDP, experienced annualized growth of 0.4%, that was revised down from the previously estimated 0.5% growth. Nevertheless, the revised growth rate is slightly higher than the 0.3% growth observed in the second quarter.

• Additionally, Mexico's central bank, known as Banxico, lowered its key rate by 25 basis points to 10.25% last week in a unanimous decision, underscoring progress on bringing down core inflation, and signaled future rate cuts were possible.

(Source: Argus Media & Reuters)