During the fourth quarter of 2020, the Mexican economy registered for the fifth consecutive quarter a negative year-on-year variation rate, after recording a rate of -4.48%. Nevertheless, it is worth noting that it increased by 4.05 p.p. compared to the previous quarter. Regarding prices, inflation registered a rate of 3.52% in the fourth quarter of the year, after decreasing by 0.37% with respect to 3Q20. Regarding the labor market, the unemployment rate decreased down to 4.51% in the fourth quarter of 2020. The Mexican peso appreciated by 7.05% against the US dollar during 4Q20, reaching an average exchange rate of 20.54 pesos per dollar.

 


Macroeconomic outlook report: Mexico 4Q20

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Macroeconomic overview

  • The Mexican GDP registered its fifth consecutive quarterly contraction, recording a year-over-year variation rate of -4.48%. Nevertheless, it recorded an increase of 4.05 p.p. with respect to the previous quarter, which is the second consecutive increase over the previous quarter's growth, and consolidates the beginning of the Mexican economy's recovery.
  • As for the industrial activity index, during the fourth quarter of 2020, it registered an increase in its year-over-year growth of 5.45 p.p. with respect to the previous quarter, up to a rate of -3.32%.
  • Regarding the labor market, the unemployment rate decreased by 0.38 p.p. compared to the third quarter, down to 4.51% in 4Q20.
  • The Mexican peso appreciated by 7.05% against the US dollar during 4Q20, reaching an average exchange rate of 20.54 pesos per dollar.
  • Inflation registered a rate of 3.52% in 4Q20, after decelerating by 0.37 p.p. compared to the previous quarter.

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