Mexico Gdp Grows 6.7 Percent

Mexico’s economy, fueled by consumer spending, grew at a 6.7 percent rate in the fourth quarter, leaving it with its fastest annual growth rate in 16 years.

The economy grew 7 percent last year, four times the population’s growth rate.

“We are seeing stronger domestic demand than in previous years,” which is fueling growth, said Carlos Rosales, an economist at Bancomer SA, Mexico’s second-largest bank.

Mexico’s growth, though, was slightly below the forecasts of 16 economists who, in a Bloomberg News survey, estimated a 7 percent rate for the October-December period on average.

The smaller-than-expected growth rate may hint of trouble for Mexico in he wake of Asia’s financial difficulties. Investors and economists are worried that Asia’s troubles will hurt the economy as a flurry of currency devaluations in that part of the world could make it harder for Mexican manufacturers to continue exporting.

If exports slow down, company earnings may fall and Mexico’s rapid expansion could decelerate.