Mexico’s economy took a positive turn in October, growing at a monthly rate of 1%, the National Institute of Statistics and Geography (INEGI) announced on Monday.
The growth came as a welcome surprise after the Mexican economy slumped 0.3% in the third quarter, raising fears that the negative trend would continue for several more months.
According to INEGI’s Global Indicator of Economic Activity (IGAE), October’s increase was driven by the primary sector — mostly agriculture — which grew 1.4% compared to the previous month.
The tertiary sector (trade, services and tourism) followed in terms of positive performance, increasing by 1.2%. Cultural and sporting entertainment services and other recreational activities were particularly successful, with a 3.5% rebound compared to September figures.
Meanwhile, the industrial or secondary sector saw the least growth, at just 0.7% compared to September. While construction increased by 3.8%, the manufacturing sector contracted by 0.3%.
In its year-on-year comparison, the IGAE recorded 1.6% growth in October, owing to a 11.8% increase in primary activities and growth in the tertiary sector of 2.5%.
But smooth sailing ahead is by no means guaranteed. Some of the principal economic risk factors in the medium term include the ongoing uncertainty around U.S. trade tariffs and the slowdown of the U.S. economy, analysts from the Mexican Securities Brokerage House (Valmex) said in a previous report.
“This is compounded by the sluggish pace of public investment and persistent weakness in business confidence, which continue to limit the prospects for recovery in the short term,” Valmex analysts stated in the report.
With reports from El Sol de México and El Economista
