Mexico’s economy slows in the third quarter

Mexico’s economy slowed in the third quarter, posting a slight contraction compared to the previous three months, though it was still well above the same quarter a year ago.



MEXICO CITY – Mexico’s economy slowed in the third quarter, posting a slight contraction compared to the previous three months, but also up from the same quarter a year ago, according to data released Thursday by its National Institute of Statistics and Geography.



Mexico’s President Andres Manuel López Obrador urged the public to “calmly watch” the effects of the recession and said the economy would still end the year with 6% growth due to rising jobs and foreign investment. He said the number of workers registered in the social security system was now higher than before the pandemic.



The third quarter performance of the economy was up 4.7% from the same quarter last year.

The disappointing economic news came a day after the peso fell 1%, which closed at 21.44 against the dollar on Wednesday. BASE Financial Group attributed the decline of the peso to the surprise announcement that Victoria Rodriguez Ceja would be López Obrador’s nominee to lead the central bank after the withdrawal of Arturo Herrera’s nomination. Rodriguez Seza is the Under Secretary for Expenditure at the Treasury and will face confirmation.

Mexico’s economy is recovering from the crisis triggered by the pandemic, thanks in large part to strong economic growth in the United States, which is driving Mexican exports, particularly manufacturing products, Coutino wrote in a report Thursday.

Strong remittances from Mexicans working outside the country are also helping.

But Coutino had made a lower forecast for Mexico’s annual growth than the president. Despite a gradual recovery in demand, he saw potential drag, including pressure from the government to implement measures that limit competition. They expect annual growth of 5.3% after last year’s 8.2% contraction.

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