Mexico’s Economy Surprises With Fastest Expansion in Over a Year - BNN Bloomberg

(Bloomberg) -- Mexico’s economy expanded in August at the fastest pace in more than a year driven by services, suggesting domestic activity is more resilient than expected.

Economic activity expanded 5.7% from the previous year, the most since July 2021 and above all forecasts from economists in a Bloomberg survey whose median estimate was for a 3.1% increase. On a monthly basis, activity grew almost 1%, also above expectations, the country’s statistics institute said on Tuesday.

What Bloomberg Economics Says

“The results suggest the central bank has less monetary policy flexibility. Along with high inflation and increasing US interest rates, they support our expectations for Banxico to continue raising rates.”

-- Felipe Hernandez, Latin America economist

-- Click here for the full report 

Latin America’s second-largest economy is expected to lose steam later in the year and in 2023 amid higher interest rates and slower growth in the country’s main trading partner. A near-certain US recession next year will likely pull Mexico into a contraction as well, according to Bloomberg Economics. 

MEXICO INSIGHT: Model Shows US-Imported Recession in 2023

(Updates with view by Bloomberg Economics.)

©2022 Bloomberg L.P.

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Mexico’s Economy Surprises With Fastest Expansion in Over a Year - BNN Bloomberg
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