Saturday, February 22, 2014

México: Growth in 2013 Expanded Just 1.1%, Below the Projection of 1.3%

According to The Latin American TribuneMéxico’s gdp expanded 1.1% in 2013, below the official forecast of 1.3% growth and the smallest annual gain since the global recession of 2009, the National Statistics Institute (Inegi) said Friday (February 21).

In the fourth quarter of last year, the country’s gdp rose 0.7% in real terms compared to the same three-month period of 2012.

Projected results were lower than the numbers released January 30 by the Finance and Public Credit Secretariat, which saw México’s economy having grown 1.3% in 2013 and 1.5% in the fourth quarter of that year.

COMMENT: Inegi’s data, which diverged widely from all official forecasts, revealed that México’s economy slowed sharply in the fourth quarter relative to the previous three-month period, when gdp expanded 1.4%.

The Finance Secretariat had said in its January report that México’s economy continued to recover in the fourth quarter after having slowed in the first quarter, but Inegi contradicted those findings.

The services sector grew 2.1% last year relative to 2012 and agriculture, fishing and forestry expanded by 0.3%, but extraction and manufacturing contracted by 0.7%, Inegi said.

Mexico’s fourth-quarter gdp growth compared to the previous quarter came in at just 0.18%, the Institute said. 

Latin America’s second-largest economy expanded 3.9% in 2012 compared to the previous year, and México’s government is forecasting a return to that pace of growth in 2014.