Skip to main content
You have permission to edit this article.
Edit
Mexico's economy slowed in 3rd quarter
0 Comments
AP

Mexico's economy slowed in 3rd quarter

  • Updated
  • 0
{{featured_button_text}}
Mexico's economy slowed in 3rd quarter

FILE - Sergio Munoz turns the crank on a traditional organ, as his assistant looks for residents in their homes willing to donate a few pesos, in the Roma Norte neighborhood of Mexico City, April 18, 2020. Mexico’s economy slowed in the third quarter of 2021, posting a slight contraction compared to the previous three months, though it was still well above the same quarter a year earlier, according to data released Thursday, Nov. 25, 2021, by the National Institute of Statistics and Geography.

MEXICO CITY (AP) — Mexico’s economy slowed in the third quarter, posting a slight contraction compared to the previous three months, but still well above the same quarter a year earlier, according to data released Thursday by its National Institute of Statistics and Geography.

Moody’s Analytics Latin America Director Alfredo Coutiño noted the effects of a surge of COVID-19 infections in August, supply-chain disruptions and a new law in Mexico aimed at eliminating outsourcing as among the factors responsible for the 0.4% quarterly contraction.

Mexico President Andrés Manuel López Obrador urged the public to “view calmly” the effects of the slowdown and said the economy would still finish the year with 6% growth due to growing employment and foreign investment. He said the number of workers now registered in the social security system was now higher than before the pandemic.

The economy’s third quarter performance was 4.7% above the same quarter last year.

The disappointing economic news came one day after the peso dropped 1%, closing Wednesday at 21.44 to the dollar. BASE Financial Group attributed the peso's plunge to the surprise announcement that Victoria Rodríguez Ceja would be López Obrador's nominee to lead the central bank after withdrawing the nomination of Arturo Herrera. Rodríguez Ceja is the undersecretary for expenditures at the Treasury and will face confirmation.

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

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

But Coutiño had a lower forecast for Mexico’s annual growth than the president. Despite demand gradually improvement, he saw potential drags including the government’s push to implement measures that limit competition. He expects annual growth of 5.3% following last year’s 8.2% contraction.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

0 Comments

Concerned about COVID-19?

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

  • Updated

LONDON (AP) — The new potentially more contagious omicron variant of the coronavirus popped up in more European countries on Saturday, just days after being identified in South Africa, leaving governments around the world scrambling to stop the spread.

  • Updated

CANBERRA, Australia (AP) — Violence receded Friday in the capital of the Solomon Islands, but the government showed no signs of addressing the underlying grievances that sparked two days of riots, including concerns about the country's increasing links with China.

  • Updated

PRETORIA, South Africa (AP) — The overcast, drizzly skies match the somber mood at the Tshwane University of Technology, a hot spot in South Africa’s latest surge of COVID-19 cases, apparently driven by the new omicron variant that is leading countries around the world to impose new restrictions.

Recommended for you

Get up-to-the-minute news sent straight to your device.

Topics

Breaking News

News Alert