Mexico's economy blooms in Q2, fastest growing pace since 2022
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Mannequins stand behind a shop window with a display advertising reduced prices (Rebajas), near Mexico City's Zocalo main square, Mexico January 8, 2024. REUTERS/Henry Romero
By Aida Pelaez-Fernandez
MEXICO CITY, Aug 24 (Reuters) - Mexico's economy rebounded in the second quarter from the previous three-month period, national statistics agency INEGI said on Monday, posting its strongest expansion since early 2022.
Latin America's second-largest economy expanded 1.4% and rebounded from a revised 0.3% contraction in the first quarter.
All three main sectors tracked by INEGI posted growth during the period, with primary activities - which include farming, fishing and mining - leading the way with a 2.4% expansion.
Growth, however, was slightly below INEGI's preliminary estimate of 1.5% published last month.
In annual terms, Latin America's second-largest economy expanded 2.1% in the second quarter, the statistics agency said.
In a separate report, INEGI said that in June alone Mexico's economy contracted slightly 0.1% compared with the prior month, but registered a 2.8% expansion from June of 2025.
STUBBORN INFLATION
Official data also showed that Mexico's 12-month inflation rate accelerated in early August, reaching 3.26%, up from 3.10% a month earlier.
Though the rate is still within the Bank of Mexico's target range of 3%, plus or minus one percentage point, persistent inflation coupled with signs of economic improvement tilt towards a rate hike, despite the bank's recent cautious tone.
Banxico, as the central bank is known, held its interest rate at 6.5% earlier this month and its policymakers were inclined to keep its benchmark rate unchanged for an extended period, minutes of the meeting showed.
The closely watched core price index, which strips out some volatile food and energy prices, rose 3.93% in the 12 months through early August, and climbed 0.08% compared with the first half of July.
(Reporting by Aida Pelaez-Fernandez and Ricardo Figueroa; Aditional reporting by Isabel Teles; Editing by Gabriel Araujo and Alistair Bell)
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