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Macroeconomic outlook report: Mexico

Third quarter of 2017

During the third quarter of 2017, the Mexican GDP recorded an deceleration of 1.50 p.p. in its y/y growth rate with respect to the previous quarter, to a 1.73%. This behaviour was explained by the negative effects of the earthquakes and the reduction in the oil production. With regard to the labour market, the unemployment rate increased at a rate of 3.55%. The dollar nominal exchange rate appreciated 0.74 pesos per dollar, recording an average value of 17.82 MXN/USD.

Macroeconomic overview

  • The Mexican economy continued its acceleration to a y/y growth rate of 1.73%, which represents a 1.55 p.p. increase over the rate of the previous quarter. This performance was driven by the negative effects of the earthquakes and the important reduction in the oil production. This performance is fostered by the deceleration in the private consumption and the weakness of the investment.
  • The external demand showed a positive rate during this quarter, due to the expansion of the manufacture exports as a result of the growth of automobile and oil exports.
  • Regarding the labour market, the unemployment rate increased 0.09 compared to 2Q17, reaching the 3.55% rate. Despite this performance, Mexico was the fourth economy of the OECD with the lowest unemployment rate.
  • The nominal exchange rate appreciated respect to the dollar, discontinuing the depreciation started in 3Q14. The exchange rate was 17.82 MXN/USD in 3Q17, which represents a reduction of 0.74 pesos per dollar compared to 2Q17.
  • Inflation reached the 6.48% in 3Q17, which represents an increase of 0.38 p.p. compared to the previous quarter, the highest level of the last years.

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

© GMS Management Solutions, S.L., 2018. 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.