Private consumption in Mexico falls 11% in 2020; its largest decline in history
Private consumption in Mexico registered a contraction of 11 percent at an annual rate in 2020, based on original figures, its largest drop since data has been available, informed this Friday by the National Institute of Statistics and Geography (Inegi). This represented a historic low for the Monthly Indicator of Private Consumption in the Domestic Market (IMCPMI), that is, since 1993, caused by measures to contain the coronavirus pandemic.
Moreover, it is its first drop after ten consecutive years of increases. This result surpassed the drop in 2009, when it fell 6 percent, and that of 1995, when it fell 4.8 percent. This indicator measures the behavior of spending by the country's resident households on consumer goods and services, both of domestic and imported origin, although purchases of homes or valuables are excluded.
Domestic consumers showed a preference for domestic over imported goods. Consumption of imported goods fell 15.1 percent last year, its largest contraction since 2009, when it dropped 17.4 percent.
On a disaggregated basis, of total imported goods, the purchase of semi-durable goods showed an annual decrease of 16 percent, based on original figures; durable goods fell 27 percent, and non-durable goods advanced 3.8 percent.
Consumption of domestic products fell by 10.5 percent at an annual rate during 2020. This represented its steepest drop since data has been available. In the interior, demand for domestic goods decreased 6.6 percent, ending ten consecutive years of gains.
Semi-durable consumer goods showed a 26.1 percent decline, consumption of non-durable goods fell 1.6 percent, and durable goods 'slipped' 15.3 percent, in original figures. In the case of services demand, it fell 14.1 percent in 2020, its deepest drop since data has been available.