RIO DE JANEIRO, BRAZIL – Mexico’s economy bounced back strongly in the third quarter, driven by a strong recovery in secondary activities, but was 8.6% smaller than the same period a year earlier, data released by the national statistics agency showed on Thursday, November 26th.
Gross Domestic Product grew 12.1% between July and September from the previous three-month period, the INEGI statistics agency said, 0.1 percentage point more than provisional numbers had showed.
The quarter-on-quarter increase was the biggest since current records began at the start of the 1980s, and benefited from stimulus spending in the United States.
The recovery was driven by a 21.7% surge in secondary industrial activity, which includes mining, energy and manufacturing.
U.S. demand helped Mexico rack up large trade surpluses during the past four months, as exports picked up speed, especially in the automotive industry. By contrast, domestic demand has lagged, with many businesses still struggling.
However, Mexico’s economy was still 8.6% behind the same period of 2019, Thursday’s figures showed, in line with the provisional numbers.
Mexico’s central bank forecasts the economy will shrink between 8.7% and 9.3% in 2020, its deepest annual contraction since the Great Depression.
In September the recovery slowed, monthly economic activity data also released on Thursday showed. Compared to August, the economy grew 1% in the month.
Source: Reuters