Economy

Mexican economy rises 12% in Q3 rebounding contraction caused by lockdown

Compared to the third quarter of last year, Latin America's second-largest economy dropped 8.6% in unadjusted terms in the third quarter

REUTERS/Henry Romero/File Photo
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  • Mexico’s economy is forecast to decline nearly 10% this year, its deepest annual contraction since the Great Depression;
  • By October 19, nearly a third of the jobs lost due to the pandemic had been recovered, the government said.

Mexico‘s economy jumped 12.0% in the third quarter, as expected, offsetting much of the contraction recorded in the previous three months at the peak of the country’s coronavirus lockdown, preliminary data showed on Friday.

Analysts in a Reuters poll had expected data from the Mexican statistics agency Inegi to show a seasonally adjusted growth in the gross domestic product (GDP) of 11.9% compared to the second quarter.

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In the period from April to June, at the height of Mexico’s pandemic lockdown, the economy fell 17.1% compared to the first quarter.

Compared to the third quarter of last year, Latin America‘s second-largest economy dropped 8.6% in unadjusted terms in the third quarter, against Reuters’ forecast of a loss of 8.7%.

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An analysis of the figures shows that activities such as agriculture, forestry, and fishing, increased 7.4% in relation to the previous quarter. Manufacturing, increased 22.0%, Inegi said.

Consumer spending and the service sector increased by 8.6%.

Mexico’s economy is forecast to decline nearly 10% this year, its deepest annual contraction since the Great Depression.

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The most severe months for the Mexican economy were April and May when much of the business activity was paralyzed, leading to the loss of about one million formal jobs. By October 19, nearly a third of those jobs had been recovered, the government said.

(Translated by LABS)

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