Mexico's economy grew by 2 percent in 2017, down from 2.9 percent in 2016, due to less industrial activity linked to the United States, the country's statistics bureau INEGI announced Friday.

In its annual report, INEGI said that industrial activity dropped 0.6 percent in 2017, compared to 0.4 percent the year before. However, the services industry saw a reversal, climbing 3 percent after a 3.9-percent dip in 2016.

While the Mexican economy contracted slightly in the third quarter last year, it rallied in the final quarter with a 1.5 percent year-on-year growth.

Due to the strengthening of the global economy and the depreciation of the peso, Mexico reduced its current account deficit to 1.6 percent of gross domestic product (GDP) in 2017 from the 2.1 percent in 2016, estimated at 18.831 billion U.S. dollars, down from 22.828 billion dollars, according to the central bank.

The private Mexican bank, Ve por Mas, indicated in a separate report that Mexico's economic growth in 2018 will stand at 2.2 percent, due to global economic expansion and the increasing price of raw materials.

However, despite these positives, the central bank said that volatility on the financial markets could not be ruled out if global financial conditions worsen, adding that inflation could reach 3 percent in the first quarter of 2019.