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Macroeconomic outlook report: Mexico

Fourth quarter of 2018

During the fourth quarter of 2018, Mexico recorded a year-over-year growth rate of 1.73%, a slowdown of 0.82 p.p. from the previous quarter. This behavior was mainly due to the quarterly slowdown experienced by both internal and external demand. Regarding to the labor market, the unemployment rate rose to 3.36%. The Mexican peso depreciated against the dollar, recording an average exchange rate of MXN 19.86/USD during the fourth quarter of the year.

Macroeconomic overview

  • The Mexican GDP grew at a year-on-year rate of 1.73%, slowing by 0.82 p.p. from the previous quarter. This behavior was motivated by the quarterly deceleration experienced by both internal and external demand, due to the decline in growth of private consumption and investment. On the other hand, the industrial activity index registered a deceleration in its year-on-year growth of 2.28 p.p. to a rate of -0.87%.
  • Regarding the labor market, the unemployment rate increased 0.03 p.p. with respect to 3Q18, to a rate of 3.36%. Year-on-year employment growth slowed by 0.52 p.p. to 2.51%.
  • The Mexican peso depreciated against the U.S. dollar compared to 3Q18. The average exchange rate was 19.86 MXN/USD in the fourth quarter, an increase of 0.90 pesos per dollar from 3Q18.
  • Inflation reached 4.82% in 4Q18, down 0.09 p.p. compared to the previous quarter, mainly due to 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.