Mexico City, July 25 (IANS/EFE): Mexico's economy will gain strength in the second half of this year and finish 2013 with gross domestic product growth of 3.1 percent, Moody's Investors Service said.

The forecast from the US credit-rating agency is in line with the latest projections from Mexican officials, who said domestic and external factors caused the economy to slow in the first half of this year.

"The Mexican economy has decelerated recently, but the current softness is more a product of cyclical deceleration and growth should resume toward the second half of this year and will, in fact, be stronger next year," Moody's Investors Service said.

Mexico's GDP should grow 3.1 percent this year and 3.5 percent in 2014, Moody's Investors Service assistant vice president Alonso Sanchez said.

"After the global economic crisis, many companies increased their cash reserves and extended maturities via refinancings," Moody's said.

These moves should help companies easily cover short-term, long-term and operating funding needs with cash and lines of credit until the end of next year, Moody's said.