The Mexican economy suffered a setback in 4Q2021 as the GDP contracted 0.1 percent from 3Q2021 following a fall in tertiary activities, reports the National Institute of Statistics and Geography (INEGI).
“By component, the estimated GDP of Tertiary Activities decreased 0.7 percent, that of secondary activities grew 0.4 percent and that of primary activities grew 0.3 percent in the fourth quarter of 2021 in relation to the previous quarter. At an annual rate and with seasonally adjusted series, the Timely Estimate of Gross Domestic Product showed a real increase of 1 percent in the fourth quarter of 2021. By economic activity, the increases were 4.8 percent in GDP for primary activities, 1.6 percent for secondary activities and 0.1 percent for tertiary activities,” reads INEGI’s press release.
Mexico’s GDP registered a staggering 19.9 percent growth in 2Q2021, as the country showed incredible resilience in recovering from the pandemic. In 3Q2021, the country’s GDP further grew by 4.5 percent. However, Mexico closed 4Q2021 with a 0.1 percent growth, a setback in what started as a very promising recovery at the beginning of the year. Overall, Mexico increased its GDP by 4.8 percent this year, after falling 8.2 percent in 2020.
The Mexican economy saw mixed results in 2021, with the creation of 994,506 jobs from Dec. 2020 to Dec. 2021, according to INEGI. Several areas of the economy registered important growth, as most of the jobs went to the most resilient and better performing industries. The food and beverages preparation sector outperformed the rest of the country’s industries by creating 106,061 jobs in comparison to the previous year, followed by manufacture of transportation equipment with 99,066 jobs and professional, scientific and technical services with 67,897 jobs, as reported by MB.
“In 3Q2021, economic activity slowed its recovery, exhibiting a contraction compared to the previous quarter and persisting heterogeneous performance among its different sectors. This is due to the recrudescence of the pandemic during the period. To the above was added a sharp drop in business in business support services activity due to the entry into force of the new regulation on subcontracting labor,” explained the Bank of Mexico (Banxico), as reported by MB.