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Macroeconomic outlook report: Mexico

Third quarter of 2019

During the third quarter of 2019, Mexico recorded a year-over-year growth rate of -0.22%, a decrease of 0.37 p.p. from the previous quarter. This behavior was mainly due to the weakness registered in consumption, fixed investment and manufactured exports that explained the lower evolution. Regarding prices, inflation reached 3.31% in 3Q19. Concerning the labor market, the unemployment rate increased to 3.54%. The Mexican peso depreciated against the dollar, recording an average exchange rate of 19.44 MXN/USD during the third quarter of the year.

Macroeconomic overview

  • Mexico's GDP diminish at a year-over-year rate of -0.22%, decelerating by 0.37 p.p. from the previous quarter. This performance was mainly driven by the weakness of consumption, fixed investment and manufactured exports.
  • As for the industrial activity index, during the third quarter of 2019 it registered a slowdown in its year-over-year growth of 0.02 p.p. with respect to the previous quarter, to a rate of -1.88%.
  • In the labor market, the unemployment rate rose by 0.01 p.p. compared to 2Q19 to 3.54% in 3Q19. The year-over-year growth rate of employment stood at 2.17% in the third quarter of the year, after acceleration of 0.03 p.p. compared to 2Q19.
  • The Mexican peso depreciated against the U.S. dollar during 3Q19, to an average exchange rate of 19.44 pesos per dollar, 0.31 pesos per dollar more than in 2Q19, a depreciation of 1.65%.
  • Inflation reached 3.31% in 3Q19, after decelerating 0.90 p.p. from the previous quarter.

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

© GMS Management Solutions, S.L., 2020. 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.