Mexico Economic Outlook
November 10, 2020Preliminary data revealed that GDP contracted at a softer annual pace in Q3 than in Q2 as activity gradually recovered from the Covid-19 blow. On a quarterly basis, the economy rebounded vigorously, growing at the sharpest rate on record. The results underlined an uneven recovery in the making: Firmer foreign demand largely buoyed the industrial sector via a solid recovery in exports, particularly those tied to manufacturing. Meanwhile, the key services sector, which accounts for about two thirds of the economy, lagged behind as some form of restrictions prevailed in most of the country and still-elevated unemployment and weak sentiment weighed on domestic demand. Looking ahead, this pattern seems to have continued into Q4: In October, the manufacturing PMI jumped to growth territory, albeit just barely, for the first time in 17 months, whereas the services PMI retreated further into contractionary terrain.
Mexico Economic GrowthEconomic activity will plummet this year due to the coronavirus fallout, before bouncing back to growth in 2021 as demand revives. That said, significant risks remain, including subdued sentiment constraining household and capital spending, uncertainty surrounding the course of the pandemic, and the lack of significant fiscal relief measures hindering the recovery. FocusEconomics panelists project the economy to expand 3.7% in 2021, which is unchanged from last month’s forecast. In 2022, they see GDP growth waning to 2.5%.
Mexico Economy Data
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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
January 8, 2021
Consumer confidence rose in December last month’s slight dip, with the seasonally-adjusted consumer confidence indicator published by the Statistical Institute (INEGI) coming in at 38.1 points, up from November’s 36.7 reading.
January 7, 2021
Consumer prices increased 0.38% in December over the previous month, picking up from November's 0.08% increase.
January 4, 2021
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) inched down to 48.7 in December from 48.9 in November.
January 1, 2021
Remittances amounted to USD 3.4 billion in November, representing a 15.6% year-on-year expansion.
December 24, 2020
Merchandise exports rose 2.3% annually in November (October: +2.9% year-on-year).