Mexican economy shrinks in the first quarter of 2019

In the first quarter of the year, the Mexico Gross Domestic Product (GDP) registered a decrease of 0.2 percent in real terms, in comparison with the previous quarter, with figures adjusted for seasonality.

Mexican economy shrinks in the first quarter of 2019
Mexican economy shrinks in the first quarter of 2019

The National Institute of Statistics and Geography (Inegi) mentions that, by components, Secondary Activities fell 0.6 percent, Tertiary decreased 0.2 percent; while the Primary grew 2.6 percent in the period.

According to Banco Base, the initial estimate of Mexico's economic growth in the first quarter represents the lowest annual GDP growth since the fourth quarter of 2009, according to figures adjusted for seasonality.

Likewise, it is the first time since the first quarter of 2017 that there have been simultaneous quarterly reversals in secondary and tertiary activities, which represent more than 96 percent of the total GDP.

"Although an economic recession is not anticipated, that is to say, that the GDP of the second quarter is also contracted on a quarterly basis, it is worrying that tertiary activities (the services sector) have shown a contraction with respect to the end of 2018, since this sector explained more of 90 percent of last year's economic growth."

In its annual comparison, the Inegi refers that the Timely Estimation of the Gross Domestic Product with seasonally adjusted series had a real increase of 0.2 percent in the quarter in question, in relation to the first quarter of 2018.

By economic activities, the GDP of the Primary Activities observed an advance of 5.6 percent and that of the Tertiary ones of 1.0 percent, while that of the Secondary Activities decreased 2.1 percent in the same period.

With original figures, the Early Estimate of the GDP registered an advance of 1.3 percent compared to the same period of the previous year. Primary Activities advanced 5.9 percent, Tertiary Activities gained 1.9 percent; while Secondary Activities registered a drop of 0.7 percent with respect to the same period of 2018.

The Inegi pointed out that the timely estimates provided in its press release could change with respect to the figures generated for the traditional quarterly GDP, which will be published on May 24, 2019.

via Press release by Inegi

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