Mexico GDP Grows 0.9% in Third Quarter, Beating Forecasts and Easing Banxico Rate-Cut Pressure

Mexico's economy expanded 0.9% in the July-to-September period from the previous quarter, preliminary data showed on Friday, surpassing the 0.7% forecast in a Reuters poll of analysts. The result came in below the 1.4% growth recorded in the second quarter. On an annual basis, GDP grew 3.2%, well above economists' expectation of 2.5%. Growth was driven by a 1.1% expansion in services and a 0.8% rise in industry, while primary activities such as agriculture and mining contracted 0.4%. The stronger-than-expected reading weakens the case for an immediate rate cut at Banxico's policy meeting next week. Pantheon Macroeconomics' Andres Abadia said the data reinforced expectations that Banxico would hold its benchmark rate at 6.50% through the first half of 2027. Finance Minister Edgar Amador maintained the ministry's full-year growth forecast of between 1% and 2%.