During the third quarter of 2020, the Mexican economy registered for the sixth consecutive month a negative year-on-year variation rate, after recording a rate of -8.63%. Nevertheless, it is worth noting that it increased by 10.03 p.p. compared to the previous quarter. Regarding prices, inflation reached a rate of 3.89% in the third quarter of the year, after increasing by 1.12 p.p. with respect to 2Q20. Regarding the labor market, the unemployment rate increased up to 4.93% in the third quarter of 2020. The Mexican peso appreciated by 5.28% against the US dollar during 3Q20, reaching an average exchange rate of 22.10 pesos per dollar.

 


Macroeconomic outlook report: Mexico 3Q20

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Macroeconomic overview

  • The Mexican GDP registered its sixth consecutive quarterly contraction, recording a year-over-year variation rate of -8.63%. Nevertheless, it recorded a significant increase of 10.03 p.p. with respect to the previous quarter, mainly due to the relaxation of the measures implemented to contain the spread of the virus, which motivated the partial recovery of the industrial activity, private consumption and external demand.
  • As for the industrial activity index, during the third quarter of 2020, it registered a significant increase in its year-over-year growth of 16.52 p.p. with respect to the previous quarter, up to a rate of -8.97%.
  • Regarding the labor market, the unemployment rate increased by 0.16 p.p. compared to the second quarter, up to 4.93% in 3Q20.
  • The Mexican peso appreciated by 5.28% against the US dollar during 3Q20, reaching an average exchange rate of 22.10 pesos per dollar.
  • Inflation reached a rate of 3.89% in 3Q20, after accelerating by 1.12 p.p. compared to the previous quarter.

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