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Mexico's economy grows 0.1 pct in Q2

Source: Xinhua| 2019-08-01 06:52:03|Editor: yan
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MEXICO CITY, July 31 (Xinhua) -- Mexico's economy grew 0.1 percent in the second quarter of 2019, compared to the previous quarter, buoyed by the service sector as industrial activity idled, the National Institute of Statistics and Geography (Inegi) said on Wednesday.

According to Inegi's preliminary estimates, which have been seasonally adjusted, Mexico's gross domestic product (GDP) expanded thanks to a 0.2 percent growth in the service sector from April to June.

Industrial activity remained stagnant over the same period, while agricultural activity shrank by 3.4 percent.

Inegi's unadjusted figures show a 0.7 percent dip in GDP in the second quarter versus the same quarter of 2018.

The Scotiabank financial group gave the results a "negative reading," saying the year-on-year result, if confirmed, indicates the first contraction in GDP since the fourth quarter of 2009.

"Our economy shows clear signs of weakness, reflected in the nine successive downgrades in economic growth forecasts for this year," Scotiabank said.

"Mexico's current context has been characterized by greater economic and political uncertainty, which has led to lower levels of trust and to a decrease in investment, moderation in consumption and decreasing job creation," the group said.

As Latin America's No. 2 economy, after Brazil, Mexico is seeing a slowdown in economic activity that is in line with global trends. In 2018, the economy expanded by 2 percent.

The central bank Banxico is expecting an economic slowdown in a range of 0.8 percent to 1.8 percent.

President Andres Manuel Lopez Obrador in April adjusted his administration's growth forecast for the year to between 1.1 percent and 2.1 percent.

Inegi is set to issue revised GDP figures on Aug. 23.

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