Mexico's economy grows 0.6% in Q2

Mexico's economy grew 0.6 percent in the second quarter, officials said Monday, keeping up its solid growth as the country heads into clutch renegotiations of the North American Free Trade Agreement.

The figure matched the growth rate in the first quarter, when Mexico shook off predictions of economic doom and gloom following US President Donald Trump's arrival in office.

Trump's vows to deport Mexican immigrants en masse, make Mexico pay for a border wall and overhaul its crucial trade relationship with the United States had caused major jitters in Latin America's second-largest economy.

But after an initial period of volatility around his election last November, the Mexican economy has stabilized.

A major new test will come on August 16, however, when Mexico, the US and Canada begin negotiations to overhaul NAFTA.

Trump says the 23-year-old trade agreement has shipped American jobs south of the border, and wants a new deal.

NAFTA is a cornerstone of the economy in Mexico, which ships 80 percent of its exports to the United States.

Mexico's GDP grew 2.3 percent last year. The central bank is predicting growth of 1.5 to 2.5 percent this year.

source: AFP