Mexico’s Economy Slows Down: INEGI

The National Institute of Statistics and Geography’s (INEGI) Timely Indicator of Economic Activity (IOAE) reports that Mexico’s economy is slowing down, as inflation rises to historic records. INEGI’s Global Indicator of Economic Activity (IGAE) also decreased by 0.1 percent in July 2022.

“For July 2022, the IOAE estimates an annual rate variation of the IGAE of 1.5 percent. The estimates made present their respective confidence intervals at 95 percent for the months of June and July 2022. For the Large Sectors of Activity of the IGAE, an annual increase of 2.7 percent is calculated for secondary activities and 0.8 percent for the tertiary sector,” explains INEGI’s press release.

The IOAE allows for estimates on timely econometric data on the evolution of the global economic activity. It is published three weeks after the end of the month, and five weeks before the official statistics from IGAE.

IGAE reports that secondary activities reported a monthly decrease of 0.2 percent, while tertiary activities fell by 0.1 percent. The IOAE is built from a nowcasting model that builds on INEGI’s previous achievements and takes them one step further to offer more timely estimates of the evolution of a set of macroeconomic indicators of interest, reports the institute. The IOAE is based on officially published data from the secondary and tertiary economic activities, as economic and financial explanatory variables are incorporated to report adequate estimations of the economy.

Despite the numerous challenges, some economic activities are taking off. For example, Mexican tourism and air traffic reported significant growth in July 2022. Mexico's Volaris, Viva Aerobus and Aeroméxico reported a combined four-year high in passenger traffic and their best month of the year, as reported by MBN. The airlines surpassed their July 2021 figures by about 20 percent primarily due to aggregate solid tourism demand combined with the drop in global COVID-19 infections. During the month, Volaris transported 2.8 million passengers, Aeromexico 2.1 million and Viva Aerobus 1.9 million.