Mexico Economic Outlook
March 12, 2019Fourth-quarter national accounts were bleaker than initially thought, highlighting the increasingly challenging economic backdrop dominated by heightened policy uncertainty and a slowdown north of the Rio Grande. A supply-side analysis pinned the letdown squarely on the industrial sector, which was held back by plunging mining activity and a slump in construction works. Manufacturing output, however, was the main culprit, decelerating for a second consecutive quarter amid a slowdown stateside. Agricultural- and services-sector output, meanwhile, held up. Turning to the current quarter, available indicators have been more upbeat. Consumer confidence hit a record high in January on AMLO’s first months in office, while industrial-sector surveys revealed new optimism among firms in February. On 1 March, however, S&P Global Ratings cut its outlook on Mexico’s investment-grade credit rating on fears of exacerbated fiscal woes and decreased private-sector investment as the government aims to hike spending on heavily-indebted Pemex, the state-run oil company.
Mexico Economic GrowthDomestically, buoyant household spending will struggle to offset flagging investment this year as firms hold off in response to policy uncertainty. On the external front, the stateside cool-off will hit exports. Ratification of the new NAFTA, meanwhile, could face headwinds—although most analysts still see it as a done deal. Met the why particular analysts lowered their full-year growth forecasts in recent weeks and now see growth at 1.8% this year, down 0.1 percentage points from last month’s forecast. Next year, they see growth at 2.0%.
Mexico Economy Data
5 years of Mexico economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||8.05||-0.24 %||Mar 11|
|Exchange Rate||19.11||-0.29 %||Mar 11|
|Stock Market||41,876||0.12 %||Mar 11|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Mexico Economic News
March 1, 2019
Remittances totaled USD 2.4 billion in January (December 2018: USD 2.9 billion), a 6.5% increase from the same month a year earlier (December 2018: +6.1% year-on-year).
February 27, 2019
Merchandise trade recorded a USD 4.8 billion deficit in January, up from the USD 4.4 billion shortfall registered in the same month a year ago but in line with analysts’ expectations.
February 25, 2019
Economic activity was flat year-on-year in December, screeching to a halt on the heels of November’s 1.8% increase.
February 25, 2019
A comprehensive estimate for economic growth in the fourth quarter of last year fell shy of analysts’ expectations and confirmed a year-end slowdown on the heels of an upbeat midyear.
February 7, 2019
Consumer prices rose 0.09% from a month earlier in January, cooling from the 0.70% month-on-month increase in December.