Mexico Economic Outlook
August 9, 2016The economy lost traction in Q2, as expected. An advance estimate showed that GDP increased 2.4% year-on-year in Q2 (Q1: +2.6% yoy) and on a quarterly basis it contracted a seasonally-adjusted 0.3%, which suggests a sharper economic deterioration. Meanwhile, the latest round of PMIs showed that weakness persisted in the manufacturing sector at the outset of Q3 as the IMEF manufacturing indicator and the manufacturing PMI dropped further in July. The National Statistics Institute (INEGI) released a Socio-economic Survey with a new controversial methodology that showed household income improving over the past year, particularly for the poor. Concerns about political influence over INEGI have been growing since the president handpicked the institute’s head. In fact, the July consumer sentiment survey showed that households remain overly pessimistic, since they continue to see the country’s economic situation getting worse, and thus their own economic prospects.
Mexico Economy Data
5 years of Mexico economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.02||0.50 %||Aug 03|
|Exchange Rate||18.88||-0.29 %||Aug 03|
|Stock Market||46,845||0.61 %||Aug 03|
Mexico Economic Growth
August 9, 2016The economic forecasts for Mexico suggest that policy tightening—both fiscal and monetary—along with downward-spiraling oil production will weigh on growth this year. Moreover, volatility in the exchange rate is expected to continue on the back of Brexit jitters. Analysts expect the economy to expand 2.3% this year, which is down 0.1 percentage points from last month’s forecast. Next year, the economy is projected to accelerate to a 2.6% expansion.
Mexico Economic News
August 22, 2016
Comprehensive data show that Mexico’s GDP growth picked up some momentum in the second quarter.
August 11, 2016
Mexico’s Central Bank held a monetary policy meeting on 11 August and decided to leave the overnight interest rate target unchanged at 4.25%, in line with market expectations.
August 4, 2016
Depressed consumer confidence deepened in July.
August 1, 2016
The latest round of PMIs showed that weakness in Mexico’s manufacturing sector persisted in July.
August 1, 2016
The increase in remittances moderated toward the end of Q2.