ZCZC
BCN-22
MEXICO-ECONOMY-GROWTH
Mexico’s economy grows 0.1 pct in Q2
MEXICO CITY, Aug 1, 2019 (BSS/Xinhua) – Mexico’s economy grew 0.1 percent
in the second quarter of 2019, compared to the previous quarter, buoyed by
the service sector as industrial activity idled, the National Institute of
Statistics and Geography (Inegi) said on Wednesday.
According to Inegi’s preliminary estimates, which have been seasonally
adjusted, Mexico’s gross domestic product (GDP) expanded thanks to a 0.2
percent growth in the service sector from April to June.
Industrial activity remained stagnant over the same period, while
agricultural activity shrank by 3.4 percent.
Inegi’s unadjusted figures show a 0.7 percent dip in GDP in the second
quarter versus the same quarter of 2018.
The Scotiabank financial group gave the results a “negative reading,”
saying the year-on-year result, if confirmed, indicates the first contraction
in GDP since the fourth quarter of 2009.
“Our economy shows clear signs of weakness, reflected in the nine
successive downgrades in economic growth forecasts for this year,” Scotiabank
said.
“Mexico’s current context has been characterized by greater economic and
political uncertainty, which has led to lower levels of trust and to a
decrease in investment, moderation in consumption and decreasing job
creation,” the group said.
As Latin America’s No. 2 economy, after Brazil, Mexico is seeing a
slowdown in economic activity that is in line with global trends. In 2018,
the economy expanded by 2 percent.
The central bank Banxico is expecting an economic slowdown in a range of
0.8 percent to 1.8 percent.
President Andres Manuel Lopez Obrador in April adjusted his
administration’s growth forecast for the year to between 1.1 percent and 2.1
percent.
Inegi is set to issue revised GDP figures on Aug. 23.
BSS/XINHUA/HR/1230