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Mexico’s economy slowed in the third quarter

Updated 42 minutes ago

MEXICO CITY (AP) – Mexico’s economy slowed in the third quarter, showing a slight decline compared to the previous three months, but still well above the same quarter last year, according to the National Institute of Statistics and Geography released on Thursday.

Alfredo Coutiño, Moody’s Analytics director for Latin America, pointed out the impact of a surge in COVID-19 infections in August, supply chain disruptions and a new law in Mexico calling for the elimination of outsourcing as factors behind the quarterly decline of 0 , 4% is due.

Mexican President Andrés Manuel López Obrador urged the public to “calmly view” the effects of the slowdown, saying the economy will still end the year 6% due to growing employment and foreign investment. He said the number of workers now registered in the social security system is now higher than it was before the pandemic.

The performance of the economy in the third quarter was 4.7% above the same quarter of the previous year.

The disappointing economic news came a day after the peso fell 1% and closed at 21.44 per dollar on Wednesday. BASE Financial Group attributed the peso’s slump to the surprise announcement that Victoria Rodríguez Ceja López Obrador would be the candidate to head the central bank after Arturo Herrera’s nomination was withdrawn. Rodríguez Ceja is State Secretary for Expenditures in the Ministry of Finance and is confirmed.

The Mexican economy is recovering from the crisis sparked by the pandemic, thanks largely to strong economic growth in the United States, which is fueling Mexican exports, especially manufactured products, Coutiño wrote in a report Thursday.

Strong remittances from Mexicans working overseas also help.

However, Coutiño had a lower forecast for Mexico’s annual growth than the president. Despite the gradual improvement in demand, he saw potential obstacles, including government urges to take measures to restrict competition. He expects an annual growth of 5.3% after a decrease of 8.2% in the previous year.

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