Mexico expanded more rapidly than first thought in Q4

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Mexico’s economy grew at a quicker rate than first thought in the fourth quarter, the country’s statistics institute said on Wednesday.

The country’s economy expanded 0.7 per cent in the final three months of the year from the third quarter, and was up from a previous estimate of 0.6 per cent. Growth was 2.4 per cent year-on-year, also better than the initially reported 2.2 per cent rate.

Economists had expected the figures to have held steady between estimates.

Inflation statistics that are due out later in the week may garner more investor attention as the Latin American country has seen as sharp rise in price growth thanks to the fall in the peso following the November US election.

Consumer prices are expected to have risen at a year-on-year pace of 4.7 per cent in the two weeks of February, according to a Bloomberg survey. Ahead of the election of Donald Trump as US president consumer price growth ran at about 3 per cent.

Mexico’s central bank has taken steps aimed at propping up the embattled currency, unveiling late on Tuesday a currency hedging programme. However, some currencies strategists called the move “desperate” on the part of policymakers.

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