Economy

For the first time since the 2009 crisis, Mexico registers GDP contraction

Poor industry and service sector performance influenced outcome

The subway in Mexico City.
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  • In the year, the country contracted by 0.4%;
  • If the poor performance of the Mexican economy is confirmed in the official number 2019 the country will complete nine months of zero growth.

According to a preview from Mexico’s National Institute of Statistics and Geography (Inegi), Mexico’s Gross Domestic Product (GDP) increased by only 0.1% in the third quarter of 2019. In the year, however, the country’s GDP contracted by 0.4%.

It is the first time that the Mexican economy has been retreating on an annual basis since the fourth quarter of 2009, the year in which the global crisis caused by subprime lending in the US broke out.

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According to El Financiero, the drop was caused by the poor performance of the secondary sector, industry, which fell 1.8%, and the lack of reaction from the service sector, which had zero growth in the period, according to.

Still according to the newspaper, if the poor performance of the Mexican economy is confirmed in the official number 2019, which should be released on November 25, the country will complete nine months of zero growth.