MEXICO CITY (Reuters) -Mexico’s economy grew 0.7% in the second quarter from the previous three-month period, a preliminary estimate from national statistics agency INEGI showed on Wednesday, beating market expectations.
Latin America’s second-largest economy notched its second consecutive quarter of growth and exceeded the 0.4% expansion forecast by economists in a Reuters poll.
Secondary and tertiary activities, respectively covering manufacturing and services, grew 0.8% and 0.7% on a sequential basis, offsetting a 1.3% contraction in primary activities, which includes farming, fishing and mining.
Gabriela Siller, head of analysis at Banco Base, noted that the figures “clearly show” that Mexico is not in recession, but that “does not mean the economy is doing well.”
“There is still a risk of recession for Mexico, especially if the United States begins to strictly enforce tariffs or adds more sectors to the sectoral tariffs,” she said.
Year-on-year growth in the second quarter hit 0.1%, while economists expected a 0.2% expansion.
(Reporting by Aida Pelaez-Fernandez and Ricardo Figueroa; Editing by Gabriel Araujo)
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