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Macroeconomic outlook report: Mexico

Fourth quarter of 2017

During the fourth quarter of 2017, the Mexican economy recorded a deceleration of 0.21 p.p. in its year-over-year growth rate in comparison with the previous quarter, standing at 1.47%. The y/y growth rate of industrial activity index decelerated 0.13 p.p. to -0.63%. Regarding the labor market, the unemployment rate went down compared to the third quarter of 2017, reaching 3.35%, and the year-over-year growth rate of employment decelerated 0.66 p.p., standing at 1.42%. The Mexican peso depreciated against the US dollar, registering an exchange rate of 18.97 MXN/USD. Lastly, the inflation stood at 6.59%.

Macroeconomic overview

  • During the fourth quarter of the year, the Mexican economy registered deceleration in its year-over-year growth rate of GDP of 0.21 p.p. when compared to the previous quarter, to a rate of 1.47%. This behavior was due to the deceleration experienced by private consumption and investment. In annual terms, the Mexican GDP growth rate stood at 2.28% in 2017, a deceleration of 0.39 p.p. in comparison with the previous year.
  • As for the labor market, the unemployment rate went down by 0.20 p.p. to a rate of 3.35%. The year-over-year growth rate reached 1.42%, decelerating 0.66 p.p. when compared to the third quarter.
  • The Mexican peso appreciated against the US dollar in 1.15 pesos per dollar during the last quarter of 2017, registering an exchange rate of 18.97 MXN/USD. This depreciation was mainly based on the uncertainty related to the normalization process of the monetary policy in the United States and the process of renegotiation of the NAFTA.
  • The inflation stood at 6.59% in the fourth quarter of 2017, accelerating 0.11 p.p. compared to the previous quarter, due to the increase in the prices of energy products and fruits and vegetables.

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.