Mexico’s growth outpaces forecasts
Economic growth in Mexico accelerated faster than expected at the end of last year as a jump in the service sector helped the country shrug off a slowdown in the United States, its main trading partner.
The Mexican economy grew at a 3.8% rate in the fourth quarter, the government said Tuesday.
Economists see Mexico weathering a possible recession this year in the U.S., as expanding credit allows consumers to spend more.
Mexico’s export-oriented factories in recent years had contributed strongly to growth and job creation but also made the economy dependent on U.S. demand.
Now, several years of low inflation and largely balanced budgets have helped stabilize the economy and bring down interest rates, increasing access to credit and encouraging consumer spending.
Economists polled by Reuters had expected the economy to grow at a 3.4% pace during the fourth quarter.