Mexico’s economy is deteriorating technically as GDP declines | Business and Economic Affairs

Mexico’s economy entered its second consecutive quarter in the last three months of 2021, according to a government report released on Monday, putting the economy at risk and entering Brazil’s power plant, where its economy plummeted last year.

Gross Domestic Product (GDP) in Latin America’s second-largest history dropped in the fourth quarter by 0.1 percent from the previous three months in line with weather, according to a report published by the National Institute of Statistics and Geography in Mexico (INEGI).

This exceeded the expectations of Reuters news agency that GDP will make up the fourth quarter by 0.3 percent, after the economy rises by 0.4 percent in the third quarter.

Mexico’s Deputy Minister of Finance Gabriel Yorio said Friday that the “economic collapse”, which is described as a two-part series, does not take into account the current economic crisis and global crisis.

Yorio said global barriers, rising commodity prices, and rising shipping and shipping costs are hurting the economy.

“With its weakening of Q4, Mexico has joined Brazil in the technological fall, which is a major disappointment that puts real GDP in Mexico at a low of 4 percent below the mid-2019 threshold before COVID,” said Fiona Mackie, director of Latin America. . Caribbean in The Economist Intelligence Unit.

Brazil’s economy is in serious danger this year ahead of the presidential election in October, as concerns over voter turnout and rising interest rates rise, according to a Reuters poll.

Jonathan Heath, a member of Mexico’s largest bank and one of the keynote speakers, jumped on the bandwagon when the Mexican economy collapsed late last year.

“The idea that the economy is down because there were two consecutive sectors with a GDP deficit and to make the recession easier,” Heath said on Twitter.

“If there are two levels in line with the wrong GDP, it increases the chances of an economic slowdown, but it is not enough. A recession must follow three principles: depth, length, and spread. In the meantime, we only follow for a long time.”

Recovery remains lazy

Moody’s Investors Service analyst Renzo Merino predicts that economic growth in 2022 will be lower than expected by Mexican authorities, in view of the continuing economic downturn.

“This may be repeated in the coming years, with significant financial consequences for the remaining years. [President Andres Manuel Lopez Obrador’s] six years, depending on the potential for declining income and stability on government spending, “Merino said.

Nikhil Sanghani, a financial analyst at Capital Economics, has developed a very cautious approach.

“We suspect that Mexico will remain at risk for a long time. Shortages appear to be declining, which should allow for more robust vehicles as the exit from the export policy begins to fade,” Sanghani said.

Sanghani predicts that recovery will remain sluggish in the coming areas, however, burdened by the recent tightening of COVID-19 restrictions and economic issues.

INEGI figures show that higher education, which includes working capital, contracted 0.7 percent in the fourth quarter from the last three months in climate change.

The decline of “the field of higher education for hard work [is] a glimpse of the effects of a recently enacted law that has significantly reduced the number of services offered to companies, businesses, ”said Goldman Sachs economist Alberto Ramos in a research article.

Initial jobs, which included agriculture, fishing and mining, rose by 0.3 percent, while secondary jobs, which included manufacturing, rose by 0.4 percent.

The economy grew by 5 percent for the whole of 2021, which showed, down by 8.5 percent in 2020 when there was the worst recession in Mexico since the Great Depression of the 1930s.

“The strongest growth in 2021 was due to mathematical growth due to lower levels than in 2020 and the decrease due to actual growth from production potential,” said Alfredo Coutino, head of Latin America’s analysis at Moody’s Analytics.

GDP grew by 1.0 percent in the fourth quarter against the same period last year, data showed.

INEGI will release the final GDP data for the fourth quarter on February 25th.