Mexico Risks Recession as Second-Quarter GDP May Be Revised Down

by Nacha Cattan ,Bloomberg
August 23, 2019

(Bloomberg) — Economists expect Mexico’s second-quarter gross domestic product to be revised slightly down on Friday, with some going as far as to predict a negative number that would mean Latin America’s second-largest economy slipped into technical recession this year.

The median estimate of economists in a Bloomberg survey is for the final GDP reading to show no growth from the previous quarter. That would mean a negative revision to the 0.1% expansion preliminarily reported July 31. The national statistics institute Inegi will release the final figure at 6am on Friday.

Whether Mexico dips into a slight recession or not, growth is slowing to a crawl during President Andres Manuel Lopez Obrador’s first year in office. While he’s promised to boost social spending, that’s running up against his pledge to end wastefulness in government, which has led to budget cuts and a slowdown in public spending. And halting the privatization of the energy sector has hurt investor confidence.

But it was the poor industrial production figure in June that caused some economists to lower their second quarter estimates. Output fell 2.9% from the year-earlier period, more than analysts had expected.

No comments yet - you can be the first!

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep the Fake News Media in check.

Don’t let the MSM censor your news as America becomes Great Again. Over 500,000 Americans receive our daily dose of life, liberty and pursuit of happiness along with Breaking News direct to their inbox—and you can too. Sign up to receive news and views from The 1776Coalition!

We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.
View our full privacy policy.