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Thursday, April 9, 2015

Will Mexico's Economy Bounce Back In 2015?

According to Mexico’s latest Indicador Global de la Actividad Económica report the country’s economy expanded by 2.6% in year-on-year terms in January.

After reporting disappointing growth in 2013 and 2014 the latest numbers indicate that Mexico’s economy may be getting onto surer footing. In January Mexico’s economy grew by 0.22%. Economic growth was driven by the primary sector expanded by 13.4% compared with the same period of 2014. This latest numbers confirm a trend already under way in late 2014.

According to a recent report from FocusEconomics, “The economy gained traction in the last quarter of 2014 due to solid growth in construction, manufacturing and services, which compensated for the dismal performance in mining. With a 2.1% expansion in the full year 2014, the economy expanded at a faster pace than in 2013.”

In January Mexico’s Finance Minister Luis Videgaray warned “Today if we look at oil prices for 2016 and beyond we know that it presents a difficult environment for the national economy…and will obligate us to take measures.”

According to Mexico’s latest IGAE report the construction sector continues to be a weak point in the economy while both the transport and food and beverage service sectors reported stronger growth.

Mexico’s government is currently projecting economic growth for 2015 between 3.2% and 4.2%. Luis Robles Miaja, the head of the Mexican Banking Association Mexico, explained Mexico still “has an opportunity to achieve dynamic and sustainable growth.”

forbes.com

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