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Macroeconomic outlook report: Mexico

Second quarter of 2018

During the second quarter of 2018, Mexico recorded a year-over-year growth rate of 1.56%, which supposed a deceleration of 0.71 p.p. compared to the previous quarter. This behavior was mainly due to the quarterly deceleration experienced by both domestic and external demand. Regarding the labor market, the unemployment rate increased to 3.34%. The Mexican peso depreciated against the US dollar, and registered an average exchange rate of 19.51 MXN/USD during the second quarter of the year.

Macroeconomic overview

  • The Mexican GDP registered a y/y growth rate of 1.56%, decelerating 0.71 p.p. with respect to the previous quarter. This behavior was motivated by the quarterly deceleration experienced by both domestic and external demand, through the slower growth of private consumption and investment. For its part, the Industrial Activity Index registered an acceleration in its year-over-year growth rate of 0.61 p.p., up to a rate of 0.87%.
  • Regarding the labor market, the unemployment rate raised 0.20 p.p. compared to 1Q18, to a rate of 3.34%. On the other hand, the year-over-year growth of employment accelerated by 1.08 p.p. up to 3.04%.
  • The Mexican peso depreciated against the US dollar during 2Q18. The exchange rate stood at an average rate of 19.51 MXN/USD in the second quarter of the year, which represented a depreciation of 0.96 pesos per dollar compared to 1Q18.
  • Inflation reached 4.57% in 2Q18, which represented a decrease of 0.74 p.p. compared to the previous quarter, mainly driven by the monetary policies carried out by the Bank of Mexico, together with the fading of the effects of the energy prices of the previous year.

For more information click here to access the executive document in pdf (only available in Spanish).

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.