Mexico’s economy grows more than expected in the third quarter

Analysts expected growth of 0.8% in the quarter, according to a Reuters poll.

The advance was driven by a 4.6% increase in primary activitieswhich include agriculture, fishing and mining, and 0.9% both of the activities secondarywhich encompass manufacturing, like the tertiarywhich cover services.

“Not all that glitters is gold and therefore, while the 1.0% quarter-on-quarter growth suggests a significant acceleration of the economy, we tend to downplay this view,” said Bradesco BBI analyst Bernardo Keiserman.

He added that two factors helped the quarterly growth of Mexican GDP: a positive effect due to the comparison base with the second quarter of 2024 – when the economy expanded 0.2% – and the resumption of payments for social programs after a pause of four months for the June elections.

“We agree with Banxico’s assessment that the economy, in general, is weakening, and we currently forecast quarter-on-quarter growth of 0.3% in the fourth quarter of 2024,” Keiserman said.

At an annual rate, GDP grew 1.5% in the third quarter, although below 2.1% in original figures from the previous period, it was also higher than the 1.2% expected by analysts in the Reuters survey.

The final GDP figures for the third quarter will be published on November 22.