Mexico’s economy grows 5% in 2021, but it enters a technical recession

The Mexico’s economy Growth of 5% in 2021, according to figures from the time estimate for quarterly GDP (EOPIBT), prepared by inigi.

However, I entered the country Technical slack By adding two consecutive quarters with reversals. In the fourth quarter, economic activity declined 0.1% after a 0.4% decline in the immediate prior quarter.

In that period, the economy drifted lower due to a 0.7% decline in the service sector and only a 0.4% advance in manufacturing activity.

In the fourth quarter of 2021, timely GDP estimate #GDP recorded a decrease of 0.1% compared to the immediate prior quarter; Annual average showed a real increase of 5% (seasonally adjusted figures) https://t.co/Vs5yoBJadd #INEGI Statement #INEGI pic.twitter.com/5wEifcAJi5

– INEGI INFORMS (INEGI_INFORMA) Jan 31 2022

Capital analysts wrote that “the 0.1% decline in Mexico’s GDP in the fourth quarter confirms that the economy fell into recession in the second half of 2021 and we believe growth this year will be weaker than expected.” Client.

In its annual comparison, the economy grew 1% in the fourth quarter of last year compared to the same period in 2020.

Inegi noted that in 2021, industrial activity, which accounts for 30% of GDP, grew by 6.8%.

The services sector, which accounts for 60% of the economy, advanced by 4.2% and primary activities grew by 2.7%.

The Mexican economy was hit hard in 2020 by the shutdown of activities caused by the COVID-19 pandemic, which has caused 4.9 million infections and 305,893 deaths.

Read: A double challenge for the Mexican economy

To counter the economic emergency, President Andres Manuel Lopez Obrador’s government has avoided providing financial support to businesses and instead focused on social programs and infrastructure work such as Mexico City’s new airport and a refinery in the southeast.

For this year, private analysts who conduct a regular survey of the independent central bank expect the economy to grow by 2.7%.

On February 25, Inegi will release the final figures for economic growth.