Mexico's Economy Faces Downturn Amid Industrial Slowdown
A Reuters poll suggests Mexico's economy likely contracted by 0.3% between July and September 2024, following a slowdown in industrial activity. This marks the first quarterly GDP decline since early 2021. Rising unemployment and policy uncertainties have contributed to the downturn in Latin America's second-largest economy.
Mexico's economy is projected to have contracted between July and September 2024, ending a streak of two consecutive quarters of growth. A recent Reuters poll revealed that industrial activity slowdown was a significant factor.
According to the median forecast of 15 analysts, Mexico's GDP likely shrank by 0.3% compared to the April-June period's 0.6% rise. Secondary activities, such as mining, construction, and manufacturing, fell for the third month, signalling broader economic concerns.
Rising unemployment, reaching its peak since August 2024, and persisting uncertainties around U.S. trade policy and legacy reforms from past administrations are seen as contributing factors. Mexico's national statistics institute, INEGI, is set to release official GDP estimates soon.
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