Mexican Economic Growth Lost Steam in 2017
By Anthony Harrup
MEXICO CITY--Mexico's economic growth slowed in 2017 as declines in oil production and construction weighed on industrial activity, while services expanded at a slower rate than the previous year, the National Statistics Institute reported Friday.
Gross domestic product, a broad measure of output in goods and services, grew 1.5% in the fourth quarter from the year-earlier period, bringing full-year growth to 2.0%. Mexico's GDP grew 2.9% in 2016.
Services were the main driver of growth last year, increasing 3% from 2016, while industrial production contracted 0.6% on weakness in oil and gas output and a drag on construction from government budget cuts. Manufacturing output accelerated, however, up 2.9% after growing 1.5% in 2016.
Activity picked up in the fourth quarter following a contraction in the previous period when two major earthquakes and several hurricanes hurt oil production and services. GDP expanded 0.8% seasonally adjusted from the third quarter, which translates into an annualized rate of 3.2%.
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(END) Dow Jones Newswires
February 23, 2018 10:25 ET (15:25 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.