World Economy

Mexico Slows

Mexico Slows Mexico Slows

After an encouraging third quarter, Mexico’s economy lost steam again as the weak peso failed to give a much hoped for boost to the country’s manufacturing sector and as the energy sector remains under pressure from the collapse in crude prices. Gross domestic product grew 0.6% in the fourth quarter from the prior quarter, the country’s National Statistics Institute said on Friday, NewsNow reported. That is a shade weaker than the 0.8% growth reported in the third quarter, although it is in line with market expectations. For the year, Mexico grew 2.5%, compared with a 2.6% expansion in 2014. After a rocky start to the year, there was hope that Latin America’s number two economy was regaining its vigor following solid third quarter growth. While there has been a sharp pick up in consumer-facing industries, energy and manufacturing continue to be in the doldrums. Despite its proximity to the US, Latin America’s number two economy has been struggling to quicken growth with the slump in oil prices weighing on the energy sector.