**Mexico’s GDP Grows 0.2% in the Second Quarter of 2024; Primary Activities Decline by the Same Margin**
**by Carlos Álvarez Acevedo**
August 22, 2024
In the second quarter of 2024, Mexico’s Gross Domestic Product (GDP) saw a modest increase of 0.2%, according to final data released on August 22 by the National Institute of Statistics and Geography (INEGI). This result matches the preliminary figures previously reported.
Year-over-year, Mexico’s GDP expanded by 2.1%, slightly below the preliminary estimate of 2.2%. The growth was driven by a 0.3% increase in secondary activities, which include manufacturing, and a 0.1% rise in tertiary activities, which encompass the service sector. However, primary activities, such as agriculture, fishing, and mining, declined by 0.2%.
Despite this growth, experts highlight a slowing trend in the economy. “Mexico’s economy began to decelerate during the last quarter of 2023 after surpassing expectations for much of the year, and momentum continues to wane,” noted a financial publication.
“Although increased public spending ahead of the June national elections boosted demand, tight financial conditions and global challenges have led economists to project that annual production will slow for the third consecutive year in 2024 and for the fourth in 2025,” the same source added.
In response to these factors, Grupo Financiero Base revised its annual economic growth forecast for 2024 to 1.3%, down from a previous estimate of 1.6%. The forecast for 2025 remains unchanged at 0.8%, according to Gabriela Siller Pagaza, the head of economic research.
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**Secondary Article: Mexico’s Inflation Drops to 5.16% in Early August 2024**
In additional economic news, Mexico’s annual inflation rate decreased to 5.16% during the first half of August 2024. This figure is a significant improvement, reflecting the government’s efforts to manage price stability amidst ongoing economic challenges.