translated from Spanish: Economy grew 2.0% in 2018, the lowest rate since 2013

for 2018, the GDP grew at an average rate of 2.0%; This is the lowest rate of growth for the entire year from 2013, when the economy grew by 1.6%. The observed growth is less than the target set by Mexico, how can we? 4.5% in the year, so the #SemáforoEconómico is in orange color.
In terms of economic activities, which showed greater dynamism in 2018 were tertiary activities: grew at a rate of 2.8%, while the primary activities grew by 2.0% and the secondary 0.1%.
The growth observed in 2018 matches the trajectory of recent years: tertiary activities have grown 3.3% in the last 5 years and 2.8% in the last 10, while primaries grew 3.0% in the last 5 years and 1.9% in the last 10. The performance of secondary activities has been significantly lower, with growth of 0.8% and 0.5% in the last 5 and 10 years, respectively.
Lee: December 2018, with the biggest decline of employment observed in that month since 1997 last February 25 is published information of Mexico’s economic growth in the 4th quarter of 2018. In the period, the gross domestic product of the country increased by 0.2% over the 3rd quarter of 2018 and 1.7% compared with the 4th quarter of 2017, one annual rate lower than the one estimated by the INEGI, 1.9%.
Economic growth in Mexico is one of the most important challenges that the new administration faces, since it is a necessary, but not sufficient, to deal with problems such as poverty and inequality that persist in the country. Various organizations have pointed out the importance of boosting economic growth and catalysts to achieve this have been identified.
The International Monetary Fund, for example, said in November that the incoming administration would receive a stable economy that continues to expand, although at a pace moderate. The Agency mentioned the need to stimulate the economy so that growth benefits a greater proportion of the population.
Read also: Morelos and Tabasco, the States where more increased labour poverty in the last year according to the IMF, the economy of Mexico has shown resilience before circumstances as the uncertainty linked to the recent elections as well as the future of the commercial relationship with the United States.
For the body, it is important to continue declining debt as a proportion of GDP. Currently, the federal debt is equivalent to 44.2% of GDP, a level similar to that has been observed since 2016; in previous years, the debt as a proportion of GDP had increased steadily. In addition, they notice the need to increase non-oil revenue.
Both measures would strengthen the fiscal framework of the country. This, coupled with moderation and improvements in the efficiency of public expenditure would invest in infrastructure and other priorities.
An element in which the Executive Directors of the IMF emphasized in the report was the need to promote structural reforms, particularly in the energy sector. They noted the importance of continuing with private participation in the oil and gas sector, which would attract investment to the country and boost production in the sector.
You can interest: Sinaloa, Campeche and Morelos, with less favorable outcomes in employment in 2018 the Organization for cooperation and economic development (OECD) said that it was important that the new Government of Mexico based on the basis of the reforms structural implemented, adjust them, improve and complement other reforms in areas of policy such as the tax system and the labour market.
The document strategic priorities for Mexico published by the Organization, also mentions the importance of promoting the formality with tax incentives and increase the participation of women in the labour force, among other things.
In addition, notes that they must strengthen the institutions, increase governmental capabilities at the State level and reforming the tax system so that its fundraising capacity, effectiveness and redistributive potential to improve.
The economic growth observed in 2018 continues the trend of recent years: over the past decade, the average growth rate was 2.2%, while the rate in the past five years has been 2.6%.
In addition, in the first months of the 2019 for Mexico’s economic prospects in the next few years have been reviewed downwards by various organizations. It will be necessary to take into account recommendations of organizations such as those mentioned to design policies that boost the economy and facilitate the solution of the social and economic problems that affect part of the Mexican population.
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Original source in Spanish