With this figure, the Mexican economy reported its third month of the year with contractions. Previously, declines were observed in January and April, with a negative rate of 0.7% in each month.
The Global Indicator of Economic Activity (IGAE) confirmed that the Mexican economy registered a new decline during the month of August, according to information released by the National Institute of Statistics and Geography (INEGI) on Tuesday.
In August, the IGAE – which monitors the performance of the Mexican economy on a monthly basis – reported a contraction of 0.3% in its monthly comparison.
The latest data from the IGAE would confirm what was previously predicted by the Timely Indicator of Economic Activity (IOAE), which showed a drop of that magnitude for August, followed by a 0.1% drop in September.
With this figure, the Mexican economy reported its third month of the year with contractions. Previously, declines were observed in January and April, with a negative rate of 0.7% in each month.
In its annual comparison, economic growth measured by the IGAE slowed to 1%, after expanding by 2% in July.
By components, it can be observed that the monthly fall in the IGAE was due to the contractions observed in both primary and secondary activities.
In the case of the primary sector, which includes activities related to agriculture, fishing, livestock and similar, the reported drop was 9.1% compared to July.
The industrial sector also showed a decline in August, with a monthly fall of 0.5 percent.
Tertiary activities, which are services, were the only ones that showed monthly growth in August. The expansion of this sector was 0.3% monthly.
The lack of dynamism in the economy has caused various institutions and organizations to cut their projections for growth of the Gross Domestic Product (GDP) for this year and for 2025.
For example, just a few days ago the International Monetary Fund (IMF) cut its estimate of GDP growth this year from 2.2 to 1.5%.
Meanwhile, the Citibanamex Survey of various analysts also showed a growth of 1.5% this year compared to the previous figure of 1.7 percent.
Despite the downward revisions to growth projections, the Ministry of Finance and Public Credit (SHCP), headed by Rogelio Ramírez de la O, maintains its outlook for a 3% expansion this year.
