WRAPUP 1-Mexico economy grows, high peso not hurting trade

* Mexico economy grew 0.58 percent in August from July

* Growth 7.25 percent year on year vs 5.70 seen in poll

* Finance minister says peso gains not hurting exports

MEXICO CITY, Oct 27 (BestGrowthStock) – Mexico’s economy expanded
more than expected in August while the country’s finance
minister said a strengthening peso was not hurting exports.

The economy grew 0.58 percent in August (MXIGAE=ECI: ) from
July and 7.25 percent from a year earlier (MXIGDP=ECI: ), the
national statistics agency said on Wednesday.

Analysts had forecast growth in the IGAE reading, a proxy
for total economic output, of 5.70 percent from a year
earlier.

Some 80 percent of Mexican exports head over the northern
border so the health of the economy is closely tied to that of
the United States.

However, while the U.S. outlook is uncertain, Mexico has
benefited with the rest of Latin America from strong inflows of
foreign investment seeking higher yields due to a weak dollar.

That has helped the peso (MXN=: ) (MEX01: ) strengthen against
the dollar but Finance Minister Ernesto Cordero said Mexico is
not losing export competitiveness due to those gains.

“We have had a process of peso appreciation but Mexico has
not lost its export competitiveness due to this,” Finance
Minister Ernesto Cordero told radio station Radio Formula.

Cordero said the economy should grow 5 percent this year.

The Mexican currency is 6 percent stronger from its Sept. 1
levels but fell 0.5 percent to 12.455 per U.S. dollar early on
Wednesday as the dollar strengthened broadly.
(Reporting by Patrick Rucker, Jason Lange, Caroline Stauffer
and Veronica Gomez; Editing by James Dalgleish)

WRAPUP 1-Mexico economy grows, high peso not hurting trade