Mexico’s 2nd-Quarter Growth Beats Forecasts

Mexico’s economy picked up speed in the second quarter, fueled by factories churning out exports to the country’s giant northern neighbor and a recovery in domestic demand for goods and services. The Finance Ministry said gross domestic product grew 3.2% in the April-June period over the same period a year earlier, after growing 1.9% in the first quarter. The expansion was stronger than most economists had expected and reinforced an economic outlook that sees Mexico pulling away from its mostly recession-bound Latin American cousins. “Mexico stands out as the emerging market at the moment with the best prospects,” said Finance Minister Jose Angel Gurria, speaking in a radio interview shortly after the data were released. Economists polled in a Reuters survey had, on average, forecast second-quarter GDP growth of 2.87%. The country appears poised to at least meet or beat the Mexican government’s forecast of 3% GDP growth for all of 1999, according to economists.