Mexico's gross domestic product (GDP) grew 1 percent in the first half of this year, compared to the same period in 2012, the National Institute of Statistics and Geography, or INEGI, said Tuesday.

First-half GDP growth was driven by the service sector, which expanded 2.3 percent, and agriculture, ranching and fishing, which grew 0.40 percent, while manufacturing contracted 1.1 percent.

Mexico's economy grew 1.5 percent in the second quarter, compared to the same period last year, coming in well above the 0.60 percent growth posted in the January-March period, the INEGI said in a statement.

The service sector grew 2.6 percent in the April-June period, while agriculture, ranching and fishing expanded by 1.3 percent.

Manufacturing dropped 0.60 percent in the second quarter, compared to the same period in 2012, due to weakness in the construction and mining industries.

GDP contracted 0.74 percent, compared to the prior quarter, on a non-seasonally adjusted basis, the INEGI said.

The government said it was reducing its 2013 economic growth forecast to 1.8 percent in light of the weak GDP numbers.

The economic growth forecast is being revised downward after being cut to 3.1 percent in the first half of the year, Deputy Finance Secretary Fernando Aportela said.

Mexico's GDP grew 3.9 percent in 2012. EFE