UPDATE 2-Mexican auto exports rise 33 in January

(Recasts, adds production data, background)

MEXICO CITY, Feb 11 (Reuters) - Mexican auto production rose 25.9 percent in January and exports increased by 33.2 percent, the industry group AMIA said on Monday.

Mexico produced 166,149 vehicles and exported 118,416 during the first month of this year, AMIA said.

In January last year, production and exports were down partly because several automakers in Mexico discontinued some models for export in favor of others.

Mexican auto production edged up 2.2 percent in all of last year, hurt by slowing demand from the United States, its main export market.

Economists worry that troubles in the U.S. credit and housing markets could push the U.S. economy into a recession this year.

Industrial production is a mainstay of the Mexican economy and is highly correlated to U.S. economic activity.

Mexico's government expects the economy to expand 2.8 percent this year. (Reporting by Luis Rojas and Jason Lange; Editing by Tom Hals)