Mexico’s officially in a “technical economic recession” at the end of 2019. This was reported by the INEGI, after correcting its Gross Domestic Product (GDP) data.
Inititally, the institution reported that the economy showed a zero growth rate in the third quarter of 2019 in relation to the previous one, after discounting inflation and seasonality.
However, the data was modified and eventually it showed that the GDP contracted 0.1% in the fourth period of 2018, just as in both the second and the first quarters of 2019.
These are three consecutive quarters of setbacks, confirming that the national economy fell into “technical recession” for the first time since the international crisis of 2009.
The Global Economic Activity Indicator (IGAE) is up 0.3% monthly
The Inegi also released on November 25th the Global Economic Activity Indicator (IGAE) of September, which reflected a 0.3% increase compared to the previous month, in seasonally adjusted figures.
However, if the performance of the September economy is compared with the same month of the previous year, the increase is only 0.1%, in original data.
Goals not met
President Andrés Manuel López Obrador maintained his position throughout the year, stating on many occasions that the country’s economy would grow 2% this year and 4% on an annual average during his six-year term (which would end in 2024, if the man does not change the constitution to get re-elected).
However, in recent times the president’s speech changed, and AMLO kept saying that although the economy is not growing this year at the expected rate, greater development and distribution of wealth is being achieved (which by the way, is not totally truth according to many experts).
Change in projections
Throughout the year, most national and international analysts as well as financial services companies reduced the economic outlook for Mexico, and now a growth of around 0.5% is expected for next year.
The Mexican government announced on July 30th, 2019, a plan to mobilize 485,000 million pesos to support the economy and encourage consumption, a decision that was well seen by the business sector.
And on October 24th, the Executive announced that the call for 873 tenders was advanced for an amount of about 460 million US dollars to support the country’s economy.
The Yucatan Times Newsroom