Mexico GDP grows 2.8 percent in 2nd quarter
August 21, 2008
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MEXICO CITY—Mexico's economy expanded 2.8 percent in the second quarter, up slightly over 2.6 percent growth in the first three months of the year.
A Thursday statement from the National Statistics Institute said the farming sector led gains, posting 4.4 percent growth from a year earlier amid rising food prices.
Mexico expects growth to slow as the U.S. economy cools, prompting the Finance Ministry cut its 2008 growth estimate to 2.8 percent from 3.7 percent.
The U.S. buys about 80 percent of Mexican exports.
U.S. woes also feed a dip in remittances, as Mexicans working abroad send less cash home. Remittances are Mexico's second biggest source of foreign income after oil.
Crude production fell 10 percent through July over the year-ago period.
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