Mexico's economy shrinks for third quarter in a row
Mexico's economy contracted for three consecutive quarters following a downwards revision of figures, national statistics agency INEGI said today.
The economy shrank by 0.1pc for three consecutive quarters between October 2018 and June this year, while growth between July and September was flat against the previous period, INEGI said today.
Economists define two consecutive periods of negative growth as a recession.
President Andres Manuel Lopez Obrador had pledged to close out his first year in office, concluding this December, with 4pc growth.
Mexico's central bank has repeatedly slashed growth forecasts this year, expecting the economy to grow by just 0.2pc this year.
Moody's Investors Service expects growth to tick up next year but at 1.3pc it will remain well below the 3.1pc average seen over the past 12 years.
"Strong liquidity will help most Mexican companies navigate this downturn without significant deterioration, especially if the private sector grows accustomed to the new policy environment and spending recovers," Moody's said on 21 November.
Moody's points to the cancellation of upstream auction rounds and farm-outs as well as the renegotiation of natural gas pipeline contracts with state-owned CFE as two factors that have shaken investor confidence in Mexico this year.
By Rebecca Conan
source: Argus Media
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
