Mexico’s Economy Grows at 4.9% Rate

Mexico’s economy grew 4.9% in the fourth quarter compared with a year earlier, the fastest growth rate in four years, paced by heavy U.S. demand for its manufacturing exports, the government reported.

For the full 2004, Mexico’s gross domestic product expanded by 4.4%.

The growth rates exceeded economists’ expectations and were revised upward from earlier estimates of 4.5% for the quarter and 4% for the year.

Analysts expect Mexico’s economy to grow about 3.8% in 2005 as U.S. demand for its goods is seen flattening. However, retail sales and construction remain strong.