Mexico's economy likely slowed in second quarter: finance ministry

FILE PHOTO: Employees work at the assembly line of International brand commercial trucks, owned by Navistar, at the manufacturing plant in Escobedo, on the outskirts of Monterrey, Mexico, June 29, 2017. REUTERS/Daniel Becerril/File Photo

MEXICO CITY (Reuters) - Mexico’s economic growth likely slowed in the second quarter, the country’s finance ministry said on Tuesday, as Latin America’s second-largest economy is teetering on the brink of a recession.

“The contraction in the industrial sector, mainly in construction and mining, and the slowdown in the service sector, suggest a more moderate growth in economic activity in the country for the second quarter of the year,” a statement from the finance ministry said.

Mexico’s economy shrank 0.2% in the first quarter versus the previous three-month period, in seasonally adjusted terms, and was flat in the fourth quarter of 2018. In annual terms, Mexico’s economy expanded just 1.2%.

The statement was released just hours before Mexico’s national statistics agency is scheduled to publish a preliminary estimate for second-quarter growth figures on Wednesday and a day after it unveiled a $25 billion stimulus package.

Reporting by Sharay Angulo; writing by Stefanie Eschenbacher, Editing by Sherry Jacob-Phillips