Mexico’s industrial output rose in March at its fastest annual rate in almost four years while auto exports surged in April, showing growth is accelerating in Latin America’s second largest economy.

Industrial production, mostly exported and accounting for 40% of the economy, rose a faster-than-expected 7.6% in March from a year earlier, the national statistics agency said.

“The strength in export demand is enough to keep supporting solid growth in industrial production and in the economy in general,” said Eduardo Gonzales, an analyst at Citigroup’s Mexican subsidiary, told Reuters.

Mexico is recovering from a deep recession thanks to renewed demand for the cars, televisions and refrigerators it exports to the United States.

Volkswagen spokeswoman Consuelo Minutti, said her firm, which recently hired new workers in Mexico as it plans to launch a new compact model, expects output at its Mexican plant to rise 25% this year.

Mexican car production rose 69.6% in April 2010 from a year earlier, and exports were up 56.7%, the country’s national auto association said on Wednesday.