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Macroeconomic outlook report: Mexico

First quarter of 2020

During the first quarter of 2020, Mexico recorded a year-over-year growth rate of -2.17% registering a considerable fall when compared to the previous quarter. The Mexican economy has been registering contractions of its economic activity for four consecutive quarters, with 1Q20 being the most severe due to the impact of COVID-19. Regarding prices, inflation reached a ratio of 3.40% in 1Q20. Concerning the labor market, the unemployment rate increased up to 3.54%. The Mexican peso depreciated against the dollar, recording an average exchange rate of 20.01 MXN/USD during the first quarter of the year.

Macroeconomic overview

  • Mexico's GDP registered a year-over-year rate of -2.17%, falling by 1.39 p.p. compared to the previous quarter. This performance was primarily driven by the effects of the containment measures taken as a result of the global COVID-19 pandemic.
  • As for the industrial activity index, during the first quarter of 2020 it registered a decrease in its year-over-year growth of 1.50 p.p. with respect to the previous quarter, down to a rate of -3.38%.
  • Regarding the labor market, the unemployment rate accelerated by 0.13 p.p. compared to 4Q19, up to 3.54% in 1Q20. The year-over-year growth rate of employment stood at 2.22% in the first quarter of the year, after decelerating by 0.53 p.p. compared to 4Q19.
  • The Mexican peso depreciated against the U.S. dollar during 1Q20, to an average exchange rate of 20.01 pesos per dollar, 0.76 pesos per dollar more than in 4Q19, which meant a depreciation of 3.92%.
  • Inflation reached a rate of 3.40% in 1Q20, after accelerating by 0.46 p.p. compared to 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.