Mexico Economic Outlook
April 12, 2022After flatlining in Q4, the economy appeared to gain steam in Q1, aided chiefly by a stronger automotive industry and the fading impact of last year’s labor outsourcing ban supporting the services sector. However, a surge in Covid-19 cases and ensuing worker absences should have capped momentum early in the period, with higher interest rates and business uncertainty creating additional drags throughout the quarter. Looking at available indicators, economic activity growth ebbed in January but remained solid, while the manufacturing and services PMIs improved in February and March. In addition, remittances continued to expand by double digits through February, which should have supported private consumption. Finally, vehicle production reached the highest level since November 2020 in March, following a prolonged production downturn due to semiconductor shortages.
Mexico Economic GrowthIn 2022, growth is seen slowing, in line with ebbing momentum in the U.S. economy. While the Russia-Ukraine war will support prices for Mexico’s oil, it could also dent export demand, disrupt manufacturing supply chains and raise inflation at home. Meanwhile, an uncertain business environment will likely cap investment. FocusEconomics panelists project the economy to expand 2.0% in 2022, which is down 0.4 percentage points from last month’s forecast. In 2023, they see GDP growth waning to 2.2%.
Mexico Economy Data
5 years of Mexico economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.87||-0.24 %||Dec 31|
|Exchange Rate||18.93||-0.29 %||Jan 01|
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Mexico Economic News
May 12, 2022
On 12 May, the Governing Board of the Bank of Mexico (Banxico) opted to raise the target for the overnight interbank interest rate by 50 basis points to 7.00%, marking the eighth consecutive hike and the third this year.
May 9, 2022
Consumer prices increased 0.54% from the previous month in April, which was below March's 0.99% increase.
May 4, 2022
Consumer confidence came in at 44.3 in April, up from March's 43.9.
May 2, 2022
Remittances totaled USD 4.7 billion in March, representing a 12.6% year-on-year increase.
Mexico: Manufacturing PMI rises in April; non-Manufacturing PMI dips but remains in expansionary territory
May 1, 2022
The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) came in at 52.5 in April, up from March's 51.9.