Mexico’s Third-Quarter GDP Revised Down on Services, Industrial Output

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by Anthony Harrup

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Mexico City – Mexico’s economic activity shrank in the third quarter of the year, hampering the recovery after four consecutive quarters of growth, the National Institute of Statistics said on Thursday.

Gross domestic product, a measure of output in goods and services, shrank 0.4% in seasonally adjusted terms from the second quarter, a bigger contraction than previously reported a 0.2% decline.

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Services grew by 0.9% and industrial output by 0.3% compared to the previous quarter, while agricultural output grew by 1.3%. Services and industrial output were revised up from a preliminary estimate reported at the end of October.

Industrial activity has been hit by global supply-chain bottlenecks and semiconductor shortages, which have particularly affected the auto industry, which accounts for about 18% of the country’s manufacturing output and a third of manufactured goods exports.

Services were put back in the quarter by a third wave of coronavirus infections, which led to some capacity restrictions at restaurants, stores and other public places.

GDP had expanded in each quarter since a record contraction in the second quarter of 2020 amid widespread industry and service shutdowns over the coronavirus.

A slowdown in growth could reduce government revenues, raise the public debt ratio, while preventing the central bank from continuing its monetary tightening momentum in the face of high inflation, said Vector Casa de Bolsa, which recently It has recently lowered its 2021 economic growth forecast. From 6.1% to 5.8%.

GDP grew by 4.5% from the third quarter of 2020, and by 6.1% in the first nine months of the year.

Write to Anthony Harrup at [email protected]

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