Mexico's GDP expanded by 0.9% QoQ in 3Q23, or 3.3% YoY, as reported by INEGI's timely estimate. The Mexican economy continues to exhibit robust expansion, with an average growth rate of 0.85% QoQ and 3.5% YoY in 2023.
Industrial production registered positive growth of 1.4% QoQ, driven by strong performances in the construction and manufacturing sectors. Services, on the other hand, posted growth of 0.6% QoQ, thanks to a resilient labour market and increasing real wages, and notable contributors to this growth came from retail sales, logistics, and financial services.
Looking ahead, we anticipate that the economy may see growth of more than 3.4% in 2023, although we are mindful of potential downside risks in 4Q23, mainly due to the impact of Hurricane Otis, a natural disaster that is expected to predominantly affect sectors such as retail sales, real estate services, lodging, restaurants, and logistics services in the state of Guerrero.