Mexican GDP Contracts 0.1% in Q4
Mexico’s gross domestic product contracted 0.1 percent in the fourth quarter of 2019, the same as in the previous period and below a preliminary reading of stagnation. The primary sector shrank 1.1 percent, after expanding 3.6 percent in the prior quarter; and industrial output dropped 1.2 percent, faster than a 0.4 percent decrease in Q3, mostly due to manufacturing (-2.2% vs -0.2%) and mining (0.5% vs 1.4%). On the other hand, services activities grew 0.2 percent, following stagnation in the previous period, mainly driven by retail trade (0.5% vs -0.1%), real estate (0.6% vs 0.3%) and education (0.3% vs -0.8%). Year-on-year, the economy shrank 0.5 percent, after declining 0.3 percent in Q3. Considering 2019 as a whole, Mexico’s economy shrank 0.1 percent, following a 2.1 percent growth in 2018, marking the first contraction in a decade, on the back of lack of investment amid uncertainty over economic policies of President López Obrador during his first year in office.
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