Mexico sees economy enter stronger period of growth

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According to Mexicos finance ministry, the Mexican economy grew by about 4 percent in the second quarter of the year compared to the same period in 2004. This is an improvement over growth in the first quarter, which was just 2.4 percent better than the previous year. The gains came on better consumer spending and growth in exports. The finance minister said in his report that both private spending and public investment had grown during the quarter. Still, Mexicos central bank lowered its outlook for the year, last week announcing that its new prediction was that the economy would grow between 3.25 and 3.75 percent in 2005. The report out of the finance ministry also said that Mexico had a public surplus in the first half of the year of around 41.077 billion pesos ($3.87 billion), which was down by nearly 31 percent from the same period last year. Budget income increased by 3.7 percent, but spending was up by 6.5 percent, due at least in part of large increases in government investment programs.