Mexico's economic growth exceeded forecasts in the third quarter

Mexico's economic growth in the third quarter surpassed expert forecasts, signaling a stabilization in the economy. This growth is attributed to the robust development of key sectors and the central bank's consistent policy approach, fostering a positive economic climate.

The National Statistics Institute (INEGI) of Mexico reported a 1.1% economic growth in the third quarter, surpassing initial predictions. This growth exceeds both INEGI's early estimates and the 0.9% growth projected by the Refinitiv survey.

On an annual basis, the Mexican economy expanded by 3.3% during the quarter, aligning with Reuters poll predictions. Notably, growth spanned all major economic sectors, with agriculture, fishing, and mining leading at a 2.6% increase. Meanwhile, manufacturing and services sectors grew by 1.3% and 0.9%, respectively.

Analysts attribute this growth primarily to increased industrial activity, bolstered by higher infrastructure spending, a robust nearshore economy, and a resurgence in manufacturing.

The central bank of Mexico has maintained the interest rate at 11.25% since March this year, following nearly two years of tightening. Central bank chief Victoria Rodriguez has expressed intentions to keep the rate steady through the end of 2023, while not dismissing future discussions on potential reductions.