Mexico’s 5.1% GDP Rise Slower Than Expected

Mexico’s economy slowed sharply in the fourth quarter of 2000 as gross domestic product rose by a much slower-than-expected 5.1%. That brought the increase in 2000 GDP to 6.9%, which was below economists’ forecasts of a 7.1% rise but well above the government’s 4.5% target. The fourth quarter showed a significant drop from the 7.5% pace of growth that Mexico maintained in the first three quarters. The slowdown has long been expected, as Mexico’s economy is closely integrated with that of the United States, which is experiencing an overall slowdown. The government’s finance secretary said the services sector was the most dynamic in Mexico during 2000, with output increasing by 7.3% from 1999. The manufacturing sector grew by 7.1%, the generation of electricity, gas and water rose by 6.2% and construction expanded by 5%. Mexico’s GDP is expected to grow by only about 3.8% in 2001, below the government’s original forecast of 4.5% growth.