(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.
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
