Mexico’s Finance Ministry cut its 2013 growth forecast for Mexico to 1.8%, down from its previous prediction of 3.1%. Mexico’s National Statistics Institute reported that the country’s GDP (at least when seasonally adjusted) actually contracted 0.74% during the second quarter of 2013.
This is more bad news for the economy that Thomas Friedman hastily dubbed the Aztec Tiger. In the fourth quarter Mexico’s economy grew at an anemic 0.8 percent. Despite campaign promises that voters would “earn more” and the introduction of an ambitious set of reform bills, Mexico’s economy started to slow at exactly at the time that the country’s new president, Enrique Peña Nieto, took office.