Mexico is increasing its minimum wage by 15% starting Jan

17/18/2020

Source: Al Jazeera

The Mexican government announced the country’s daily minimum wage will rise by 15 percent in January to the equivalent of about $7 a day.

The new wage still amounts to less than $1 an hour. But the increase is well above the country’s current 3.3 percent inflation rate.

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Mexico Economy Grows at Record Pace With Long Recovery Ahead

11/26/2020

Source: Bloomberg

Mexico’s economy grew at the fastest pace in at least three decades in the third quarter, as a surge in manufacturing to meet U.S. demand helped claw back a portion of the output lost since last year.

Gross domestic product rose 12.1% from the previous quarter, according to final data released by the national statistics institute Thursday. The expansion, the best in data going back to 1990, was slightly higher than the 12% growth both estimated by economists in a Bloomberg survey and also recorded in preliminary data published last month.

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Mexico Recovery Seen Rosier by Bank After Rapid Reopening

10/21/2020

Source: Yahoo! Finance

(Bloomberg) — Grupo Financiero Banorte has more than doubled its growth forecast for Mexico next year, saying U.S. demand, record remittances, and a quick reopening have boosted activity more than expected.

Banorte, Mexico’s second-biggest lender, published new estimates that came closer to the finance ministry’s September projection of 4.6% growth in 2021 — at the time criticized by analysts as being “overly optimistic.” Mexico’s Deputy Finance Minister Gabriel Yorio said he expects more private sector analysts to follow Banorte’s revision, which put 2021 growth at 4.1%, up from an earlier 1.8% projection.

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Mexico’s Economic Recovery Is Losing Momentum After Strong Rebound

10/14/2020

Source: Fitch Ratings

Fitch Ratings-London/New York-14 October 2020: The latest data for Mexico suggest that the pace of economic recovery is slowing after a sharp rebound in June. Robust incoming data in June and July indicate that growth in 3Q20 could be higher than the 6.5% qoq projected in Fitch Ratings’ September Global Economic Outlook, but there are clear signs that momentum is slowing, according to our economics team’s latest dashboard.

The sharp rebound in industrial production in June, followed by slower growth in July and August, imply that industrial production could rise by more than 21.7% qoq in 3Q20. Yet, manufacturing output grew by a meagre 0.8% mom in August, after a strong pick-up in the previous two months, suggesting that most of the rebound has passed. Survey indicators were still in contraction territory throughout 3Q20, pointing to a deceleration ahead.

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It took decades to build Mexico’s middle class. The coronavirus could demolish it

09/08/2020

Source: Los Angeles Times

QUERETARO, Mexico — Monica Cardenas Leal was living the Mexican dream.
As her once-sleepy hometown of Querétaro transformed into an international hub of the aerospace industry, Cardenas grew with it. The daughter of a carpenter who worked multiple jobs to put food on the table, she graduated from a state aeronautics university and went to work for a Spanish firm assembling parts for Cessna jets and Sikorsky helicopters.

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Mexico’s Economy Contracted in 2019

January 30, 2020
Source: The Wall Street Journal

Mexican Pesos

MEXICO CITY—Mexico’s economic activity contracted slightly in 2019 in its weakest showing in a decade as industrial production fell and services slowed.

Gross domestic product, a broad measure of output of goods and services, was unchanged in the fourth quarter from the previous quarter in seasonally adjusted terms, and declined 0.1% for all of 2019, the National Statistics Institute said Thursday.

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At Least Three Chinese Automakers Eyeing Expansion in Mexico

January 13, 2020

Source: The New York Times

Audi Produktion Ingolstadt ? Karosseriebau /Im Karosseriebau fertigen 1.800 Mitarbeiter und 2.800 Roboter die Karosserien fuer fuenf Fahrzeugvarianten.

MEXICO CITY — At least three Chinese automakers are preparing to produce vehicles in Mexico or expand existing operations, the Mexican ambassador to China said on Monday, in what would be a boost to one of the Latin American country’s top export industries.

Jose Luis Bernal, Mexico’s ambassador to China, said that over the past year and a half his office has seen more interest from Chinese firms looking to make cars in Mexico.

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USD/MXN – US Dollar Breakdown vs Mexican Peso, Watch 2019 Low

January 7, 2020

Source: DailyFX
By: Paul Robinson

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USD/MXN HIGHLIGHTS:

  • USD/MXN big-picture triangle broke to end 2019
  • A drop through 18.7433 need to give conviction

To end 2019, USD/MXN broke out of the three-year-long triangle it had been building as a result of declining volatility. The break so far has held minimal velocity which could change quickly if last year’s low at 18.7433 is broken. The lack of momentum could also mean we are in for a ‘fake-break’.

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Mexican president voices regret on growth, but says economy fairer

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12/03/19 – Reuters

By Dave Graham

Mexico’s president conceded on Sunday that economic growth has fallen short of his expectations, but said that wealth is now more fairly distributed as he celebrated a year in office riding high in opinion polls, in defiance of mounting problems.

A year ago, veteran leftist Andres Manuel Lopez Obrador assumed the presidency pledging to raise economic growth to 4% per year. Instead, the economy has stagnated and slipped into a mild recession during the first half of the year.

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Mexico stands by Lopez Obrador, poll says, even as violence soars, economy crumbles

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12/01/19 -The Dallas Morning News

By Alfredo Corchado

As Mexican President Andrés Manuel López Obrador marks his first year in office on Sunday, Mexicans’ romance with the left-leaning populist leader remains strong.

But a new poll conducted by Mexico City’s Reforma newspaper, co-sponsored by The Dallas Morning News and The Mission Foods Texas-Mexico Center at Southern Methodist University, shows signs of fading enthusiasm as the nation faces weariness over shocking violence and slowing economic growth.

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