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Mexico's economy grows 3.1 pct in 2023, preliminary figures show

MEXICO CITY
2024-01-31 06:00

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MEXICO CITY, Jan. 30 (Xinhua) -- Mexico's economy grew by 3.1 percent in 2023, largely driven by industrial activity and the services sector, according to the preliminary figures released Tuesday by the National Institute of Statistics and Geography (INEGI).

Mexico's gross domestic product (GDP) expanded at a slower pace than the 3.9 percent growth seen in 2022, the autonomous agency's initial figures showed.

A breakdown by sector showed industrial activity rose 3.6 percent in 2023 while services grew 2.9 percent year on year, and agricultural activity increased 2.2 percent during the period.

In a separate report on the INEGI findings, Citibanamex Financial Group said that going forward external demand could weaken due to an expected slowdown in the U.S. economy, which would in turn slow Mexico's economy.

Citibanamex forecast economic growth of 2.2 percent in Mexico in 2024, with a downside risk of an eventual "hard landing" of the U.S. economy. Upside factors for Mexico were primarily associated with "nearshoring" trends of global companies.

The Mexican government has forecast economic growth between 2.5 percent and 3.5 percent in 2024.
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