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BRIEFLY / GLOBAL ECONOMY

Mexico GDP Grows 7.9% in 1st Quarter

May 17, 2000|Reuters

Mexico's gross domestic product expanded 7.9% in the first quarter as domestic demand finally took its place beside exports as a motor of the economy, the Finance Ministry said. The GDP growth was the strongest in 11 quarters. The industrial sector posted growth of 8.6%, and the services sector grew 8.2%, the Finance Ministry said. The agricultural sector grew just 0.9%. Pablo Alvarez-Icaza, deputy director of economic studies at research firm Bursametrica Management, said the data showed private consumption and investment were recuperating. Private consumption had been in the doldrums since the 1994-95 peso crash plunged Mexico into deep economic recession, and economic growth over the last year has been primarily the result of booming exports to the United States. "It's good news for Mexico because growth is balanced and as such reduces Mexico's exposure to external shocks," said Juan Pablo Chavez, an analyst at New York-based research firm IDEAglobal.com. "We think this will be the quarter with the fastest growth this year and maintain our expectation of 5% GDP expansion for 2000."

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