Mexico’s economy contracted an annualized 0.8% in the third quarter, partly because of two major earthquakes, but economists are predicting a bounceback in the fourth quarter. Among other things, oil exports increased by almost 21% in the first nine months from the same period of 2016, and overall industrial production is rising.
The consensus growth forecast for 2017 held steady in October at 2.1%, according to the Federal Reserve Board of Dallas. Petroleum exports improved, and employment growth remained strong, economists said in a monthly update issued last week.
Manufacturing exports rose 6.6%, and oil exports were up 20.9% in the first nine months of 2017. Mexico’s industrial production, which includes manufacturing, construction, oil and gas extraction, and utilities, grew 0.3% in August.