Mexico Economic Outlook
July 14, 2020The recession will have deepened in the second quarter under the full weight of Covid-19 containment measures, after GDP fell at the steepest rate in over a decade in the first quarter. Economic activity slumped at a record pace in April as all major sectors reeled, with the key industrial segment especially battered amid the shutdown of activity. In the same month, fixed investment suffered the largest annual collapse since 1995 as equipment spending and the construction industry languished. Similarly, private consumption plummeted, which, combined with plunging goods imports in May and heavy formal job losses through June, alludes to depressed domestic demand in Q2. Meanwhile, although the country is undergoing a phased reopening, the pandemic’s toll continues to mount at an alarming pace. In other news, on 8 July, President López Obrador met with his U.S. counterpart for the first time in Washington DC to celebrate the start of the USMCA trade deal, which came into force on 1 July.
Mexico Economic GrowthThe economy is poised to shrink markedly this year as the pandemic ravages domestic and foreign demand. A battered labor market and voluntary social distancing will pummel consumer spending, while weak confidence and elevated uncertainty will undermine investment. A bleak U.S. demand backdrop, foreign travel restrictions and subdued oil prices will also batter exports. FocusEconomics panelists project the economy to contract 8.5% in 2020, which is down 1.0 percentage point from last month’s forecast, and grow 3.3% in 2021.
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
August 7, 2020
Consumer prices rose 0.66% in July over the previous month, which was above the 0.55% increase logged in June.
August 3, 2020
Remittances totaled USD 3.5 billion in June (May: USD 3.4 billion), representing a 11.1% jump from the same month a year ago and accelerating strongly from the 3.0% rise recorded in May.
August 3, 2020
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) climbed to 48.1 in July from 43.1 in June, thus moving further away from the record-low reading recorded in May.
July 30, 2020
According to a preliminary reading, GDP collapsed 18.9% year-on-year in the second quarter, more severely than the 1.4% contraction tallied in the first quarter but slightly above market expectations.
July 27, 2020
Exports decreased 12.8% year-on-year in June, substantially less than May’s 56.7% collapse.