In the second quarter of 2024, Mexico’s economy remained resilient despite cautious household spending, with private investment and government consumption driving growth. The National Institute of Geography and Statistics (INEGI) reported a modest 0.2% increase in GDP, with private investment surging by 1.2% and government spending rising by 0.8%.
However, household consumption experienced a 0.6% decline due to factors like weakened job creation and a rebound in inflation. Remittances, a crucial income source for many Mexican families, also showed signs of slowing.
Mexico’s Economic Performance
Even with challenges like the absence of social program payments during the electoral ban period, Mexico’s GDP grew by 1.8% in the first half of 2024. This growth, while positive, represents a slowdown from the previous year, reflecting weakening private consumption, fixed investment, and exports.
Overall, the growth was driven by consumption and public and private investment, with government consumption also playing a role. Mexico’s trade deficit and other factors balanced out the growth, highlighting the complex dynamics shaping the country’s economic trajectory.
Mexico’s economy continues to navigate through consumer caution and global uncertainties, with private investment and government spending acting as key stabilizing factors.
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