Mexico Economy Grows By 2.8%

Mexico’s economy expanded 2.8% in the second quarter, up slightly over the 2.6% growth in the first three months of the year, the Associated Press said. The country’s National Statistics Institute said the farming sector led gains, posting 4.4% growth from a year earlier amid rising food prices.

Mexico expects growth to slow as the U.S. economy cools, prompting the Finance Ministry to cut its 2008 growth estimate to 2.8% from 3.7%. (The U.S. buys about 80% of Mexican exports.) U.S. woes also feed a dip in remittances, as Mexicans working abroad send less cash home. Remittances are Mexico’s second biggest source of foreign income after oil. Crude production fell 10% through July over the year-ago period.