Mexico's economy enters technical recession
Mexico’s economy entered a technical recession at the end of last year with two consecutive quarters of contraction
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Mexico’s economy entered a technical recession at the end of last year with two consecutive quarters of contraction despite annual growth of 5% for 2021.
Continuing issues with the global supply chain have been a problem for Mexican assembly plants. Despite COVID-19 infections falling late last year and there being few health-related restrictions, the economy struggled.
“The weakness of domestic production capacity has to do more with the structural damage caused by the pandemic and the lack of mitigation policies to help restore the level of productive investment,” said Alfredo Coutiño, Latin America director at Moody’s Analytics.
In the last three months of 2021, the economy dropped 0.1% compared to the previous three months, when it shrank 0.4%, according to the National Institute of Statistics and Geography
Coutiño warned that the weakening in the latter half of last year could have consequences for growth in 2022, adding that government measures to limit competition have slowed private investment.
The 5% overall growth in 2021 followed an 8.4% contraction in 2020 when the coronavirus pandemic gripped Mexico
The International Monetary Fund has forecast that Mexico's economy will grow 2.8% this year, while other analysts have said 2.7%.
Mexico Treasury Secretary Gabriel Yorio said last week that the economy would continue feeling the effects of COVID-19 this year.