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.


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’s Volaris Spurs Leisure Rebound to Lead Airline Recovery


Source: Bloomberg

Mexico’s biggest airline is forging a rebound from the travel collapse by using discount fares to tap demand for leisure trips.

After the pandemic hit, Volaris lowered fares 30% to coax people back onto routes that primarily serve the friends-and-family market, said Chief Executive Officer Enrique Beltranena. While a drag on revenue, the move helped the company boost passenger totals to more than 70% of last year’s levels, outpacing domestic rivals and counterparts in the U.S.


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 as a Land of Opportunity”: Changing Immigration Trends, Economic Recovery and Potential in Mexico, and Stalled Immigration Reform in the U.S.

coffee-by-flikr-user-samrevel1The Mexico Institute’s “Weekly News Summary,” released every Friday afternoon summarizes the week’s most prominent Mexico headlines published in the English-language press, as well as the most engaging opinion pieces by Mexican columnists.

What the English language press had to say…

Two articles featured this week in the New York Times discussed Mexico’s increasing appeal to both returning migrants and to individuals migrating from South America and Europe.  An article published on September 23rd stated that the country’s documented foreign-born population “nearly doubled between 2000 and 2010”, and that “officials now say the pace is accelerating as broad changes in the global economy create new dynamics of migration.” This article received a widespread response, and in a subsequent article, the Times wrote that “many foreigners who have lived in the country for years stress that while they wish the world would focus more on Mexico’s strengths, they also wish the country would do more to tackle its flaws – especially corruption and a justice system that does little or nothing.”

Continue reading ““Mexico as a Land of Opportunity”: Changing Immigration Trends, Economic Recovery and Potential in Mexico, and Stalled Immigration Reform in the U.S.”

Mexico Has Record in Sight, if U.S. Cooperates

The Wall Street Journal, 1/6/09

Mexican stocks rose to an all-time high Tuesday before reversing course and closing lower as investors turned cautious with the U.S. stock market in the red. The benchmark IPC index of 35 leading issues fell 0.1% at 32732.76. The index hit 33073.71 intraday, passing its previous intraday record of 32851.14 in October 2007.

Optimism about an economic recovery in the U.S. and Mexico had given stocks a positive start to the year, with the IPC gaining 2% Monday on the first trading day. But after disappointing data on pending home sales in the U.S., the investor mood in Mexico dimmed.

Still, Mexico’s stocks could extend their gains in the first quarter after surging 44% last year if economic reports show a robust recovery in the U.S. and Mexico that will boost corporate earnings. Mexico is more heavily influenced by the U.S. than any other Latin American country. The U.S. buys 80% of Mexico’s exports and employs millions of migrant laborers who send home billions of dollars each year.

Read more…