Mexico City, Mexico - Thanks to a spike in the agriculture industry, the economy in Mexico grew by close to 4 percent for the second consecutive year, beating government forecasts in Latin America's second biggest economy

Mexico's economy grew 3.9 percent last year, the National Institute of Statistics and Geography's official figures showed this week. The country posted similar growth in 2011 but the government had forecast a rise of only 3.5 percent for 2012.

Mexico’s economic performance is closely linked to the US, where it sends almost 80 percent of its exports. To put the value of Mexico’s trade relations into context, the country’s exports and imports account for 60 percent of its GDP.

According to the bureau, the hike was due to an increase in agricultural activity, which boosted the economy with 6.7 percent annual growth from higher production in foods such as beans, corn, wheat, and sugarcane. A strong domestic demand for the products was able to offset the weaker demand for exports to the US.

"So far, domestic demand is giving some support," said Bank of America/Merrill Lynch's chief Mexico economist Carlos Capistran. "However, it won't last for a long time." Estimates for 2013 growth are around 2.8 percent.

Mexico's new federal government is trying to pass a series of reforms in the telecommunications and energy sectors that would increase growth and formal employment in the coming year.

The country had sunk into deep recession in 2009 as the world financial crisis caused their economy to contract by six percent. But Mexico, second only to Brazil economically in the region, bounced back in 2010 with 5.3 percent growth.