Mexican telecom sector outgrows economy in 3Q16

Wednesday, November 30, 2016

The telecom and radio broadcasting sectors saw much greater year-on-year growth than Mexico's economy in 3Q16, according to telecom regulator IFT, citing data from statistics office Inegi.

While Mexico's GDP grew 2.04% year-on-year in the third quarter of this year, the telecom sector grew 14.1%, some five percentage points above the growth seen in 3Q15.

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The telecom sector ranked fourth in terms of year-on-year growth among the subsectors measured. The construction sector was the fastest-growing sector in the period with a 17.8% expansion, followed by the film and video industry with 17.2% growth and air transport with 15.0%. The telecom sector outgrew other industries, such as cultural and artistic services (12.6%); finance, insurance, and pensions (11.0%); and postal and delivery services (10.0%).

The IFT said that during the third quarter of this year, the telecom and broadcasting sectors contributed 3.6% of Mexico's GDP, or 513bn pesos (US$24.9bn), up 28bn from 2Q16. This was 61bn pesos more than 3Q15, positioning the sector as the eighth-biggest contributor to the country's GDP.