The Economy of mexico It contracted 0.4 percent in real terms in the third quarter of 2021 compared to the previous quarter, according to the revised figure from the National Institute of Statistics and Geography (Inegi) published this Thursday.
The data was higher than the timely estimate released by the institute in October, which was a 0.2 percent contraction between July and September.
Reviewing the data by sectors, the primary (which includes agriculture and livestock activities) grew 1.3 percent; the secondary (related to industry) increased 0.3 percent, and the tertiary (which has to do with services) was reduced 0.9 percent.
In its annual comparison, that is, the third quarter of this year with that of 2020, the Inegi pointed out that there was an increase of 4.7 percent, this in part due to the low comparative base: a year ago, the national economy was leaving what it has been one of its worst historical crises.
After the Global Index of Economic Activity (IGAE), a kind of monthly GDP, advanced only 0.1 percent in July and contracted 1.6 percent in August, the GDP ‘stumble’ in the third quarter was expected.
Although the economy expects a ‘push’ in the last three months of this year thanks to domestic consumption – Good End 2021 sales were 10 percent higher than those of 2020, according to estimates – recent government decisions have the potential to affect the trajectory of GDP.
On the one hand, there was the surprise decision of the president Andrés Manuel López Obrador to withdraw to Arturo Herrera the appointment to governor of Banco de México and propose instead to Victoria Rodriguez Ceja, current Undersecretary of Expenditures. At first, the decision fell badly (the peso hit its worst level since March). On Wednesday, later, Rodríguez Ceja spoke for the first time after his appointment was known, sending a message that seemed to have a clear recipient: the market.
“My commitment is to fight inflation, not to touch international reserves, to comply with the autonomy of the Bank of Mexico,” he said in a video published by the Ministry of Finance.
And that was not the only ‘surprise’ of President López Obrador this week: right at the start he published a Decree that classifies projects developed by the Government as works of public interest and national security, among which are the Felipe Ángeles International Airport and the Olmeca refinery, in Tabasco.
In addition to competing cases (such as the one to be presented by the PAN), the Mexican Institute of Finance Executives (IMEF) considered that accelerating the authorizations for projects that are considered priority, without due time and depth for their evaluation, increases the risk of privilege the speed of its execution over its quality.
The group considered that this could reduce the effectiveness to generate the desired economic and social impact, which in turn would decrease the efficiency in the use of public resources.