MEXICO CITY – Mexico’s gross domestic product (GDP) grew 2.3 percent in 2016, thanks to growth in the resources and service sectors, the National Institute of Statistics and Geography (INEGI) said Wednesday.
The Finance and Public Credit Secretariat was forecasting GDP growth of between 2 percent and 2.6 percent for 2016, with the final number coming in within that range.
Despite the economic uncertainty created in Mexico by Donald Trump’s win in the Nov. 8 US presidential election, GDP expanded at a 2.4 percent clip in the October-December period.
The fourth quarter, in fact, was the second best quarter for Mexico’s economy last year.
The 2.3 percent growth registered in 2016, however, was two-tenths of a percentage point lower than in the previous year.
Agriculture and mining grew at a 4.1 percent rate last year, while the service sector expanded 3.4 percent and manufacturing was unchanged, the INEGI said.
In the fourth quarter, GDP expanded at a 2.4 percent rate in real terms, compared to the same period in 2015, thanks to 6.4 percent growth in the agriculture and mining sector, and a 3.4 percent rise in the service sector.
Manufacturing was flat in the October-December period, the statistics agency said.
The Mexican economy’s growth accelerated in the fourth quarter, compared to the prior quarter, when GDP expanded at a 2.1 percent annualized rate.
On a seasonally adjusted basis, GDP grew 0.70 percent in the fourth quarter, compared to the prior quarter, thanks to 0.80 percent growth in the service sector and a 0.20 percent expansion in the manufacturing sector, offsetting the 0.30 percent contraction in agriculture and mining, the INEGI said.
The Bank of Mexico revised its 2017 growth forecast downward last month, adjusting the GDP growth range to 1.5 percent to 2.5 percent, or half a percentage point less than the earlier estimate.
Mexico’s GDP grew 2.5 percent in 2015, a figure that was above the 2.1 percent growth registered in 2014 and the 1.4 percent figure for 2013.