Mexico’s factories edge towards growth after 17-month contraction

08/02/2021

Source: Reuters

Mexico’s factories showed tentative signs of a recovery in July, deteriorating at their slowest pace in the current 17 month-on-month string of contractions, a survey showed on Monday.

The IHS Markit Mexico Manufacturing Purchasing Managers’ Index rose to 49.6 in July from 48.8 in June, the highest reading since February 2020 and marginally below the 50 threshold that separates growth from contraction.

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Mexico says cryptocurrencies are not money, warns of risks

06/28/2021

Source: Reuters

MEXICO CITY, June 28 (Reuters) – Mexican financial authorities on Monday said that crypto assets are not legal tender in Mexico and are not considered currencies under current laws, warning that financial institutions that operate with them are subject to sanctions.

The joint statement by the Bank of Mexico, finance ministry and banking regulator comes after Mexican billionaire Ricardo Salinas Pliego on Sunday said his banking business, Banco Azteca(ELEKTM.UL), may begin using bitcoin, which would make it the country’s first bank to start accepting the cryptocurrency.

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Why López Obrador’s Mexico is stable in protest-prone Latin America

As Latin America’s presidents battle a pandemic that has hit their people and economies harder than any other region, something uniting them is their unpopularity. 

Chile’s Sebastián Piñera and Colombia’s Iván Duque have approval ratings of roughly 18 per cent; Brazil’s Jair Bolsonaro’s rating stands at 24 per cent and Argentina’s Alberto Fernández is on 32 per cent, according to recent surveys. Peru has gone through four presidents in a year. Social unrest is sweeping the region.

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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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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 entered recession in early 2019, dealing blow to president

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11/25/19 – Reuters

By Dave Graham

Mexico’s economy entered a mild recession during the first half of 2019 and was flat in the third quarter, revised data from the national statistics agency showed on Monday, handing a setback to the plans of President Andres Manuel Lopez Obrador.

The updated figures showed the economy contracted by 0.1% quarter-on-quarter in seasonally-adjusted terms during both the first and second quarters of 2019 after also shrinking by the same margin in the last three months of last year.

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IMF Says Mexico Credit Line May Be Cut From Current $74 Billion

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11/20/19 – Bloomberg

By Eric Martin and Patrick Gillespie

The International Monetary Fund’s board plans to vote on Mexico’s request to renew its flexible credit line, possibly for less than the current $74 billion, before it expires next week.

Mexico is interested in reducing the size now that there’s greater certainty around its trade relationship with the U.S., Alejandro Werner, the IMF’s Western Hemisphere director, said in an interview Wednesday at Bloomberg’s headquarters in New York. Werner said he expects the board’s decision before the current agreement expires Nov. 28.

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Mexico Has a Productivity Problem

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11/18/19 – Bloomberg

By Eric Martin

Walk down the side-streets just off Mexico City’s iconic Paseo de la Reforma boulevard, and you’ll see dozens of examples of something that is holding back growth: the informal economy.

Workers on the taco carts or shoe-shine stands don’t pay taxes, foregoing the benefits of a social safety net. And they often sit idle for most of the day.

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Mexican Economy Barely Grew in Third Quarter

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10/30/19 – The Wall Street Journal

By Anthony Harrup

Mexico’s economy barely grew in the third quarter amid weakness in industrial production and a slowdown in services, keeping the economy on track this year for its weakest performance in a decade.

Gross domestic product, a measure of output of goods and services, expanded 0.1% in seasonally adjusted terms from the second quarter, the National Statistics Institute said Wednesday. Industrial production shrank 0.1%, services were unchanged and agricultural production grew 3.5%.

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Stripe Open For Business In Mexico