Thread: Mexican economy grows faster than expected in July

Mexican economy grows faster than expected in July

MEXICO CITY | Tue Sep 25, 2012 9:52am EDT

(Reuters) - Mexico's economy expanded by a seasonally adjusted 0.7 percent in July from June, the national statistics agency said on Tuesday, compared with 0.2 percent growth forecast in a Reuters poll and 0.9 percent growth in June.

Growth versus a year ago accelerated to 4.7 percent, faster than the 4.3 percent rate expected by analysts and than June's 3.7 percent.

The services sector grew 0.4 percent on a monthly basis for 4.8 percent annual growth while the grouping that includes utilities, mining, construction and manufacturing advanced 0.5 percent in the month and 4.9 percent in the year.
Previously released data showed exports rebounded in July and the jobless rate fell, but retail sales dropped and economists expect growth to ease in the second half of the year.

Finance Minister Jose Antonio Meade has estimated the economy would grow between 3.5 percent and 4 percent in both 2012 and 2013.
Mexican economy grows faster than expected in July | Reuters

Seriously I am pretty sure it is with the money illegals send to Mexico in remittances.

Q2 GDP SLASHED TO 1.3%

Sam Ro | Sep. 27, 2012, 8:30 AM |

The third reading on Q2 GDP just came out and the report was ugly.The headline growth number was revised down to 1.3 percent on an annualized basis.

Economists expected the number to be unchanged at 1.7 percent.

"As we recently noted, you'll need to watch the rear-view mirror to see the recession come into focus," wrote ECRI's Lakshman Achuthan in an email to Business Insider.

"The "third" estimate of the second-quarter percent change in real GDP is 0.4 percentage point, or $16.0 billion, less than the "second" estimate issued last month, primarily reflecting downward revisions to private inventory investment, to personal consumption expenditures, and to exports," wrote the Bureau of Economic Analysis.

The personal consumption component was revised down to 1.5 percent. Economists were expecting it to be unchanged at 1.7 percent.

From the Bureau of Economic Analysis:


Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.3 percent in the second quarter of 2012 (that is, from the first quarter to the second quarter), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent.

The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 1.7 percent (see "Revisions" on page 3).

The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, and residential fixed investment that were partly offset by negative contributions from private inventory investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP in the second quarter primarily reflected decelerations in PCE, in nonresidential fixed investment, and in residential fixed investment that were partly offset by smaller decreases in federal government spending and in state and local government spending and an acceleration in exports.

Motor vehicle output added 0.20 percentage point to the second-quarter change in real GDP after adding 0.72 percentage point to the first-quarter change. Final sales of computers subtracted 0.10 percentage point from the second-quarter change in real GDP after adding 0.02 percentage point to the first-quarter change.
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Read more: Revised Q2 GDP - Business Insider

I think that there are still too few jobs for Mexicans in Mexico and that the government there won't do anything to create jobs or to close the border with the U.S. so long as Mexicans know that our government won't jail employers who hire illegals.