Mexico’s Economy Rebounds in Q3, but GDP Down 8.6% on Year
·
November 26, 2020
·
2 min read
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.
One-stop reference
Company Intelligence
Every listed company in Latin America — financials, ownership and structure for 1,450+ companies across 26 exchanges, in one place.
Browse the directory →RT
Open the full Ask Rio Times →Ask Rio Times
17 years of Latin America reporting, on demand.
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
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Mexico Economy 2026: GDP, Peso, Nearshoring, Banxico and Trade
In depth
Read More from The Rio Times
The Rio Times · Power Map
See who really holds power in Latin America
Click to open the Power Map →