In the first quarter of 2019 the Mexican economy grew 0.1% over the same quarter of 2018. However, this figure is lower than that of the National Institute of Statistics and Geography (INEGI) estimated at the end of April, of 0.2% per annum.
With the rate registered in the first quarter of the year, the economic traffic light established by Mexico, how are we doing? It is orange, since the organization has as its goal that the economy of the country grow 4.5% annually in a sustained way.
According to Mexico, how are we doing?, the rate observed in the quarter reflected the growth of activities in the period. The fastest-growing sector was primary activities, with a rate of 5.6% per annum, although they represent only 3.3% of GDP nationwide.
The tertiary sector, which is the largest in the country’s economic activity, grew 1.0% annually in the first quarter of 2019, the lowest since the 2009.
Secondary activities, which represent 32.4% of GDP in Mexico fell 2.1% over the same period last year. This fall is the most pronounced since the fourth quarter of 2009, when the world went through an economic and financial crisis, explained the organization.
#Infobite in the first quarter of 2019, all sectors of secondary activities decreased in annual terms. The construction had its biggest annual fall since 3T2013. Know more information here: https://t.co/HwbN9isRKI… pic.twitter.com/Inw9TrjUkI
— Mexico, how are we doing? (@MexicoComoVamos) May 29, 2019
Mexico, how are we doing? He warned that the growth rate in the first three months of the year could cause complications if economic performance does not improve in the remainder of 2019.
To meet the economic pre-criteria for the 2020 published by the Ministry of Finance and Public Credit, estimated between 1.1 and 2.1% for 2019, “GDP will have to grow at least 1.4% annually in the next 3 quarters,” he said.
To meet the upper limit of the range of 2.1%, growth in the next quarters of the year would have to be 2.8%.
In the latest update to the OECD’s economic Prospects, published on May 21, the organization recut growth expectations for Mexico in the coming years: for 2019 expect a growth of 1.6% and 2020 of 2.0%.
The current government has said that the country will grow at an average annual rate of 4% this six-year term. If the OECD perspectives were fulfilled, in the last 4 years of government (2021-2014) Mexico will have to grow at an average rate of 5.1%, although “the growth in the first quarter of 2019 makes clear that it will be a challenge to achieve it”, the organization foresees.
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