Mexican Economy Shrinks in March 2023: INEGI
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Mexican Economy Shrinks in March 2023: INEGI

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Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Wed, 05/31/2023 - 11:51

The National Institute of Statistics and Geography (INEGI) reported that economic activity in Mexico saw a monthly decline in March 2023, based on seasonally adjusted figures. The institute reports that Mexico's Global Economic Activity Indicator (IGAE) contracted by 0.3%.

INEGI highlighted via a press release that when breaking down the economy’s components and by using seasonally adjusted data, the monthly variation in March 2023 was as follows: primary activities contracted by 1.6%, secondary activities by 0.9% and tertiary activities by 0.1%.

During the month, on an annual basis with seasonally adjusted series, the IGAE showed a real increase of 2.7% and all major activity groups showed growth: tertiary activities rose by 3.3%, secondary activities by 1.5% and primary activities by 0.9%. 

The latest update is based on the "Guidelines for Changes to Information Published in Statistical and Geographic Publications of the National Institute of Statistics and Geography," which are supplemented by the "Special Data Dissemination Standards" of the International Monetary Fund (IMF).

INEGI explained that the non-response rate in the collection of economic surveys considered for the integration of the IGAE in March 2023 recorded appropriate percentages according to the statistical design of the samples. For agricultural, oil, energy, gas and water activities, financial services and government activities, administrative records from companies and state entities were included.

The monthly decline in Mexico's economic activity reflects a complex economic landscape influenced by various factors. INEGI noted that it will continue to closely monitor future developments and analyze the underlying causes to report on the trajectory of the country's economy.

Mexico's recent nearshoring boom impacted the country's 1Q23 foreign direct investment (FDI) results, as the Ministry of Economy (SE) highlighted Mexico’s positioning as one of the world's beneficiaries of supply chain relocation. The ministry, through its National Register for Foreign Direct Investments (RNIE), reported that Mexico received a total of US$18.6 billion during 1Q23 in FDI, a year-to-year growth of 48%. This year's FDI is the largest since 2006, “The behavior observed in 1Q23 represents the confidence of investors to maintain and expand their investments in the country,” explains SE, as reported by MBN. 

Photo by:   Image by josemiguels from Pixabay

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