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Mexican economy picks up pace at start of 2012

Admin | 18.05.2012

* Mexico economy grows 1.3 pct quarter-on-quarter

 

* Mexico economy grows 1.3 pct quarter-on-quarter

* Annual growth accelerates to 4.6 percent

* Manufacturing, construction sectors grow strongly

 

Mexico's economy started 2012 strongly as a pick-up in the United States lifted Latin America's second-largest economy out of a slowdown at the end of last year.

The economy grew 1.31 percent in the first quarter, broadly in line with expectations for a 1.34 percent expansion, after an upwardly revised 0.72 percent in the previous quarter, Mexico's national statistics agency said on Thursday.

Annual growth accelerated to 4.6 percent, just above the 4.5 percent expected by analysts in a Reuters poll, picking up the pace from a revised 3.9 percent year-on-year growth in Q4.

Manufacturing, the major source of Mexico's exports, and construction both expanded strongly while the agricultural sector also rebounded.

Growth in the United States, Mexico's main trading partner, accelerated in the second half of last year and recent data have fanned hopes that it can withstand a slowdown in the euro zone, which narrowly escaped sliding back into recession in the first quarter.

Separate figures showed monthly economic activity rose 1.96 percent in March, beating expectations for a 1 percent expansion. It was 3.59 percent higher than the same time last year, compared to forecasts for 3.3 percent growth.

Source: reuters.com

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