Mexican Economy Records Minimal Growth in July

The Mexican economy continues to show signs of slowing down, as the country’s economic activities continue to register minimal increases and worse results than those of 2021. Mexico’s Ministry of Finance and Public Credit (SHCP) is also continuing to tighten economic policies in search of financial stability. 

Mexico’s National Institute of Statistics and Geography (INEGI) reported that in July 2022, the Global Activity Indicator Economic (IGAE) increased 0.4 percent at a monthly rate with seasonally adjusted figures. According to IGAE’s component and data adjusted for seasonality, monthly variation increased by 0.8 percent in primary activities, 0.4 percent in secondary and 0.4 percent in tertiary activities. INEGI uses 2013 as a base year. 

“Most economic series are affected by seasonal and calendar factors. Adjusting the data for these factors allows us to obtain seasonally adjusted figures. Its analysis helps to make a better diagnosis of the evolution of the variables,” reads INEGI’s press release.

In July 2021, IGAE advanced 2.2 percent at an annual rate with seasonally adjusted series in real terms. However, primary activities recorded a 2.7 percent fall, as secondary activities increased 3.5 percent and tertiary activities recorded a 1.7 percent advance. Inflation also increased that month, reaching 8.15 percent, according to INEGI, as reported by MBN. Inflation has kept increasing, reaching 8.76 percent in the first two weeks of September. 

INEGI also specified that for agricultural, oil, energy, gas and water activities, financial services and government administrative records; companies and state units complied in a timely manner with the required information via email and through the Internet.

“Global growth is slowing sharply, and a further slowdown is likely as more countries enter a recession. I am deeply concerned that these trends will persist, with lasting consequences that are devastating for people in emerging markets and developing economies,” said David Malpass, President, World Bank Group, as reported by MBN.