Banorte expects GDP growth of 0.8 percent in the third quarter of the year

Despite beginning from a low reference point in the third quarter of the year, the Mexican economy would have improved.

Banorte’s analytical department made the advance, estimating a 0.8 percent GDP growth in the third quarter of 2023, with an annual performance of 1.2 percent.

For Banorte, led by Carlos Hank González, the economy’s impulse would have been concentrated in services (0.8% t/t) and primary activities (4.0 percent), with factors that most likely contributed to this acceleration being relatively solid consumption, albeit with some volatility in employment, the dynamism of remittances, the normalization of the payment schedule of social programs, and some moderation in inflation.

In agriculture, the beginning of the rainy season and decreasing levels of dryness would have been critical in breaking the four-quarter drop. The GDP statistic is consistent with a 0.7% annual decrease in the September IGAE.