Mexico’s economy slows in second quarter amid uncertainty on NAFTA renegotiation
Mexico’s economic growth slowed slightly to 0.6% in the second quarter, down from the 0.7% rate registered in the January-March period, official data showed. The contraction was attributed to setbacks in the oil and gas sectors as well as construction.
In annual terms, GDP expanded 1.8% in the second quarter compared with a year earlier as uncertainty surrounding the NAFTA renegotiation prevents industrial activity from expanding to its full potential.
“Expectations for year-end have improved, a reflection of the favorable performance of the domestic market, the reactivation of external demand and greater confidence in the strength of the relationship with our main trading partner,” Mexico’s Finance Ministry said in a statement.
The Finance Ministry added that it will update its current estimate of 2017 GDP growth of between 1.5% and 2.5% when it presents its 2018 fiscal budget proposal to Congress coming September.