The Gross Domestic Product (GDP) showed a decline of 0.4% at the quarterly rate, according to seasonally adjusted figures released earlier by the statistical institute (INEGI), compared to the estimated data at the end of October of 0.2%. Analysts consulted by Reuters expected a contraction of 0.3%. The slowdown occurred after a lower economic expansion of the United States, the main partner of the Latin American country.
The biggest blow of the pandemic to the second largest economy in Latin America occurred in the April-June quarter of 2020, with a collapse of 17.8%, a figure that was revised. Since then, Mexico had recorded four consecutive periods of quarterly growth.
The Primary activities grew 1.3%, while secondary activities, led by manufacturing, rose 0.3%, and tertiary or services decreased 0.9%, detailed the INEGI.
Goldman Sachs analyst Alberto Ramos said that persistent inflationary pressures, rising interest rates, “slow credit flows, and regulatory and policy noise” add short-term downside risks to the economy. exercise. “If the economy were to remain flat during the fourth quarter at the level of 3Q2021, real GDP would increase by 5.2% in 2021,” he added.
At a year-on-year rate, GDP grew by 4.5% between July and September, compared to an expansion of 4.6% in original figures in the same period last year.
The Mexican economy suffered a contraction of 8.5% last year, its worst performance since 1932 during the Great Depression.
Source From: Ambito
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