MEXICO CITY – Mexico’s gross domestic product (GDP) showed zero growth in the third quarter of this year compared to the previous quarter, according to seasonally adjusted figures released on Monday by the National Statistics and Geography Institute (INEGI).
The definitive GDP result is 0.1 percent below the preliminary figures released on Oct. 30, when the economy was said to have grown at a mediocre 0.1 percent.
In the second quarter, Mexico showed zero economic growth, compared to the first quarter, when the GDP contracted by 0.2 percent from the last quarter of 2018, a situation that motivated the government to admit that the country is going through an economic slowdown bordering on recession.
In the third quarter, primary activities increased by 3.3 percent, secondary activities fell by 0.1 percent and tertiary economic activities grew by 0.1 percent compared to the April-June quarter, according to non-seasonally adjusted figures, INEGI said in a statement.
The original figures showed that the GDP fell by 0.3 percent in this year’s third quarter compared to the same period the year before, and the year-to-date economic activity confirms that the economy is stagnating with overall growth of zero percent.
Compared with the same period last year, the stagnation in GDP in the third quarter was ascribed to the drop in secondary economic activities (-1.4 percent), partially counteracted by the 5.4 percent rise in the primary sector and the 0.1 percent rise in the tertiary sector.
On Monday, INEGI also announced that the Global Economic Activity Indicator (IGAE) for September showed a hike of 0.3 percent compared with August, in non-seasonally adjusted figures.
Nevertheless, the economic performance for September compared to the same month last year showed a 0.1 percent rise.
Mexican President Andres Manuel Lopez Obrador has said many times so far this year that the country’s economy would grow by 2 percent in 2019 and by an average of 4 percent during his six-year term in office, which will end in 2024.
However, recently he has changed his discourse, saying that although the economy is not growing this year at the expected clip, development is progressing and wealth is being redistributed in Mexico.
So far this year, most analysts have reduced their economic forecasts for Mexico and currently growth for 2019 is pegged at around 0.5 percent.
The Mexican government on July 30 announced a plan to provide 485 billion pesos ($25.4 billion) to support the economy and spur consumption, a decision that was received well by a good portion of the country’s business community.