MEXICO CITY – Industrial production fell at an annualized rate of 2.9 percent in Mexico in April, the National Institute of Statistics and Geography (INEGI) said Tuesday.
Mining contracted 9 percent; construction fell 4.2 percent; power generation and transmission, and water and gas dropped 3.1 percent; and manufacturing decreased 0.40 percent, the INEGI said in a statement.
During the January-April period, industrial production fell 1.2 percent, compared to the same period in 2018.
On a seasonally adjusted basis, industrial production rose 1.5 percent in April, compared to March, thanks to 2.2 percent growth in construction, a 1.6 percent rise in power generation and a 0.60 percent increase in manufacturing.
Mining, however, declined 0.60 percent in April, the INEGI said.
In 2018, industrial production rose at an annualized rate of 0.20 percent in Mexico, thanks to increases in the power generation, manufacturing and construction sectors.
Industrial production contracted 0.60 percent on a year-on-year basis in 2017 due to a poor performance by the mining, construction and power generation sectors.
Mexico’s gross domestic product (GDP) grew 2 percent in 2018, down slightly from the 2.1 percent growth posted the year before.
President Andres Manuel Lopez Obrador has promised to implement policies that will help Mexico’s economy grow at an average annual rate of 4 percent during his six-year term, which ends in 2024.
Economists, banks and international financial institutions, however, contend that the 4 percent target is unrealistic and say Mexico’s GDP will likely grow about 1.5 percent this year, a figure that they have revised downward several times.
Mexico’s GDP contracted 0.20 percent in the first quarter, compared to the October-December period in 2018.
The recent trade tensions with the United States led some institutions to warn of a possible recession in Mexico.
On May 30, President Donald Trump said his administration would impose escalating tariffs on Mexico unless that country took aggressive steps to stop the flow of illegal migrants from Central America.
Trump said in a Twitter post that he would impose a 5 percent tariff starting June 10 on all Mexican imports until the rate hit 25 percent in October.
The dispute was resolved via diplomacy and Washington did not impose the tariffs.