MEXICO CITY (AP) – The Mexican economy grew 3.1% in 2022, encouraged by the expansion of the manufacturing sector and the recovery of services despite inflationary pressures and the unfavorable international environment generated by the invasion of the ‘Ukraine.
For the fifth consecutive quarter, Latin America’s second-largest economy showed favorable behavior that allowed gross domestic product (GDP) to grow by 0.5% between October and December compared to the previous quarter, according to revised figures released Friday by the National Institute of Statistics and Geography (INEGI).
The activation of the product device last year was largely driven by the secondary sector, which includes manufacturing and the oil industry, which grew by 3.3% compared to 2021, while the tertiary sectors, which include tourism, trade, communications, services and transport; and primary, which includes agriculture, livestock and fishing, expanded by 2.8% and 2.7%, respectively.
The director for Latin America of the consultancy Moody’s Analytics, Alfredo Coutiño, said in a report that the Mexican economy started 2022 with solid growth but was gradually losing strength, affected by a significant moderation in the services sector. and industry, which, according to the analyst, shows signs of a marked slowdown in internal and external demand.
Mexico’s productive apparatus is enjoying a period of recovery amid accelerating inflation, which rebounded in January for the second month in a row and reached an annualized rate of 7.91%. To cope with soaring prices, Banco de México raised interest rates earlier this month from 10.5% to 11%, the highest level in 15 years, as part of a restrictive monetary policy which has maintained for more than a year to curb consumption.
The International Monetary Fund has predicted that Mexico will grow by 1.7% this year.