Mexico's economy blooms in Q2, fastest growing pace since 2022

Mexico's economy rebounded in the second quarter ‌from the previous three-month period, national statistics agency INEGI said on Monday, posting its strongest expansion since early 2022.

Latin America's second-largest economy expanded 1.4% and rebounded from a revised 0.3% contraction in the first ‌quarter. All three main sectors tracked by INEGI posted growth during the period, with primary activities - which ‌include farming, fishing and mining - leading the way with a 2.4% expansion.

Growth, however, was slightly below INEGI's preliminary estimate of 1.5% published last month. In annual terms, Latin America's second-largest economy expanded 2.1% in the second quarter, the statistics agency ⁠said.

In a ​separate report, INEGI said ⁠that in June alone Mexico's economy contracted slightly 0.1% compared with the prior month, but registered a 2.8% expansion from ⁠June of 2025. STUBBORN INFLATION

Official data also showed that Mexico's 12-month inflation rate accelerated in early August, reaching 3.26%, ​up from 3.10% a month earlier. Though the rate is still within the Bank of Mexico's ⁠target range of 3%, plus or minus one percentage point, persistent inflation coupled with signs of economic improvement tilt towards a ⁠rate ​hike, despite the bank's recent cautious tone.

Banxico, as the central bank is known, held its interest rate at 6.5% earlier this month and its policymakers were inclined to keep its benchmark ⁠rate unchanged for an extended period, minutes of the meeting showed. The closely watched core price index, ⁠which strips out some volatile ⁠food and energy prices, rose 3.93% in the 12 months through early August, and climbed 0.08% compared with the first half of July.