The Wall Street Journal reported on Monday that Mexico's economy has not only recovered from the global crisis,it has "expanded in 2010 at its fastest pace in a decade",with the country's gross domestic product (GDP) rising 5.5%. The growth is largely due to a strong export-oriented industrial sector in Mexico which stimulated domestic demand,and a stronger than expected US economy during the last quarter of 2010,which increased output in manufacturing.
According to the National Statistics Institute (Inegi),Mexico's GDP for the fourth quarter of 2010 hit 4.6%,which is better than the 4.3% median estimate previously made by a Dow Jones survey group of nine economists. In addition,Mexico's industrial production grew 4.7% from the previous year in the last quarter of 2010,while agriculture grew 9.9%.
Mexico's service sector also expanded 4.2% from 2009 numbers during the last three months of 2010,which was 1.22% higher than the previous quarter. Furthermore,2010 saw Mexico's GDP grow at the fastest rate since 2000. Still,economists believe output remains below what it could be,which the Bank of Mexico expects to change during the second half of 2011. Mexico's biggest bank,BBVA Bancomer,agrees,stating that the country will benefit in 2011 from increasingly favorable financing conditions and a growing US economy.
In response to the reports,Mexico's Finance Minister Ernesto Cordero stated,"The combination of economic growth and low inflation will allow Mexican families to feel the economic recovery in their pockets. The main indicators we have at the close of 2010 show a clear trend of economic consolidation as well as growth that is more sustained and balanced between internal and external sectors."