Background on the Mexican Economy and Key Players
Mexico’s economy experienced a rebound in April, according to data released by the National Institute of Statistics and Geography (Inegi). Following a 0.2% contraction in March, the Mexican economy showed signs of recovery with a 0.5% monthly growth in April, as reported by the Indicador Global de la Actividad Económica (IGAE).
Key Economic Indicators and Sectoral Performance
In April, the annual growth rate stood at 1.4%. Breaking down the performance by economic sector, the primary sector (comprising hunting, agriculture, livestock, and similar activities) reported a 3.7% decline.
- Secondary activities, which include industries, expanded by 0.1% monthly.
- Tertiary activities, encompassing services, grew by 0.9% compared to the previous month.
The recovery comes amidst economic uncertainty, primarily driven by decisions made by the United States.
Government and Institutional Perspectives
The Mexican Secretaría de Hacienda y Crédito Público (SHCP) forecasts a 1.5% to 2.3% growth in Gross Domestic Product (GDP) for Mexico this year. However, these projections have been deemed optimistic by some institutions.
- The Banco Mundial revised its growth projection downward to 0.2% for the year.
- The Instituto Mexicano de Ejecutivos de Finanzas (IMEF) maintains a projection of 0.1% growth.
- The Organización para la Cooperación y el Desarrollo Económicos (OCDE) recently increased its growth expectation from a 1.3% contraction to 0.4% growth.
- The Banco de México (Banxico) predicts a modest growth of 0.1%.
Key Questions and Answers
- What is the IGAE? The Indicador Global de la Actividad Económica (IGAE) is a measure of economic activity in Mexico, released monthly by Inegi.
- Which sectors contributed to the growth? The tertiary sector, which includes services, was responsible for 0.9% of the monthly growth.
- What are the varying GDP growth projections for Mexico? The SHCP projects 1.5% to 2.3%, while other institutions like the Banco Mundial (0.2%), IMEF (0.1%), OCDE (0.4%), and Banxico (0.1%) have revised their projections downward.
- What factors contribute to the economic uncertainty in Mexico? The primary source of uncertainty is the decision-making process by the United States.
