Mexico's economic activity fell 0.8% in January 2020

mexico's-economic-activity-fell-0.8%-in-january-2020

Economic activity decreased 0.8% in January 2020 compared to the same month of the previous year due to the fall in the agricultural sector and industrial

Televisa News SOURCE: newscasts televisa FROM: CDMX

Mexico's economic activity fell 0.8% in January 2020 – (Cuartoscuro)

Mexico's economic activity decreased 0.8% in January of 2020 compared to the same month of the previous year due to the fall in agricultural and industrial sector, according to original figures from the National Institute of Statistics and Geography (INEGI) .

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In a statement, the agency indicated this Thursday that this decline in the Global Indicator of Economic Activity (IGAE) is the result of the decrease in primary activities (1.6%) and secondary (0.5%), while the tertiary sector advanced (1.1%).

According to seasonally adjusted figures, without conjunctural and calendar factors, the IGAE remained unchanged (0%) compared to the previous month as a result of the rise in the industrial sector (0.3%) and the fall in the agricultural sector (0.3% ) and services (0.2%).

The IGAE is a preliminary indicator of different sectors that shows the trend or direction that the Mexican economy will have in the short term.

Mexico's gross domestic product (GDP) fell 0.1% in 2019 compared to the previous year due to the reduction of industrial activity, according to INEGI data.

2019 was the first full year in the Presidency of Andrés Manuel López Worker.

The GDP of the largest Latin American economy after Brazil increased 2.1% in 2018 and in 2017, less than 2.9% registered in 2016 and 2.6% of 2015.

The world coronavirus crisis will also have a strong impact on Mexico, this 2020 and private financial institutions, which estimated that the national economy this year, they have already warned of a contraction as strong as that of the recession that began at the end of 2008 .

BBVA recently estimated that the economy will fall 4.5% this year, in line with forecasts for declines of 4.5% from Bank of America, 4% from Credit Suisse, 2.6% from Citibanamex, 2% from Barclay's and 1.8 % of JP Morgan.

The Director General of the World Trade Organization (WTO), Roberto Azevedo, warned this Wednesday that the world is facing an economic crisis worse than the one suffered in 2008, for which it must prepare with international collaboration and open markets, since “no country is self-sufficient”.

With information from EFE

LSH