Mexico Economy Grows Less Than Expected in Gradual Recovery


Source: Bloomberg

Mexico’s economy grew less than expected in the second quarter as demand from the U.S. as well as improving domestic consumption translate into a gradual recovery.

Gross domestic product rose 1.5% from the previous three-month period, less than the 1.8% median estimate in a Bloomberg survey. From a year ago, GDP grew by 19.7%, according to preliminary data from the national statistics institute published Friday.


Khiron Accelerates Entry into Mexico, Awarded High-THC Extract Export Quotas for Mexico by the Government of Colombia


Source: Yahoo! News

With a population close to 130 million people, Mexico is among the top 15 economies worldwide and second largest in Latin America. Approximately 11.7 million people have conditions treatable with medical cannabis (Source: IMS Quintiles)

Leveraging its Project of National Strategic Interest (PINES) designation, Khiron receives THC extract export quota for Mexico from Colombia, for up to 700 Kg of extract and finished medical product


Mexico’s Clip hits unicorn status after SoftBank investment


Source: Reuters

Mexican payments startup Clip on Thursday said its valuation has jumped to nearly $2 billion after a recent investment led by SoftBank Latin America Fund and Viking Global Investors LP, putting it in a small but growing club of Mexican “unicorns.”

The company was the first in Mexico to receive funding from SoftBank’s Latin America fund in 2019. The latest investment round amounted to $250 million, Clip said.


Toyoda Gosei Starts Operation of New Plant in Mexico


Source: Business Wire

KIYOSU, Japan–(BUSINESS WIRE)–Toyoda Gosei Co., Ltd. (TOKYO:7282) has established a new plant in Mexico, the TAPEX Mexicana, S.A. de C.V. (TAPEX) Monterrey Plant, and started its production of the bags that are a main component of automotive airbags in March 2021. This will help to meet the growing demand for airbags.

In Toyoda Gosei’s medium-term 2025 Business Plan, airbags and other safety system products are a key area that will drive future business growth, and the company is focusing effort on increasing sales to Japanese automakers and other customers. The bags are produced mainly in Mexico and Vietnam to raise cost competitiveness. With the operation of the new plant in Mexico, Toyoda Gosei will increase annual bag production capacity by about 8 million units.


Mexico is increasing its minimum wage by 15% starting Jan


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.


Mexico Economy Grows at Record Pace With Long Recovery Ahead


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.


Mexico Recovery Seen Rosier by Bank After Rapid Reopening


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.


Mexico’s Economic Recovery Is Losing Momentum After Strong Rebound


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.


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


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.


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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