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Mexico GDP expands 2.5% yoy in Q2

Staff Writer |
The Mexican economy advanced 2.5% year-on-year in the second quarter of 2016, compared to a preliminary reading of 2.4% and better than a 2.4% growth rate in the previous two quarters.

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Production in industry and agriculture expanded at a faster pace while the services sector grew less due to a slower expansion in domestic demand.

Industrial production went up 1%, compared to a 0.3% growth in the previous period. Manufacturing (1.6% compared to 1% in Q1), construction (3% compared to 1.7% in Q1) and utilities (6.4% compared to 1.9% in Q1) grew at a faster pace while the mining sector declined 4.3%, following a 3.2% drop in the previous period.

The services sector expanded 3.2% (3.5% in Q1) mainly due to a slowdown in internal trade (2.3% from 3.6% in Q1) and real estate (1.8% from 2.2% in Q1) while transportation (2.9% from 2.7% in Q1) and financial and insurance activities (7.2% from 6.7% in Q1) grew at a faster pace.

The agricultural sector advanced 3.8%, compared to 3% in the previous period.

On a quarterly basis, the economy shrank 0.2%, compared to preliminary estimates of a 0.3% fall. Yet, it is the first contraction in three years.

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