Mexico will the end the year recording around 2.5% growth, which is below the 3.4% level which was projected for 2015. The unemployment rate stood at 4.5%, which was similar to the previous quarter’s numbers. The un-official employment rate remains around 58% where it has remained for several quarters. Monetary aggregates are growing at slightly lower rates than in previous quarters. The decision by the Federal Reserve to increase interest rates partly explains the decrease.
Mexico will the end the year recording around 2.5% growth, which is below the 3.4% level which was projected for 2015.
The unemployment rate stood at 4.5%, which was similar to the previous quarter’s numbers. The un-official employment rate remains around 58% where it has remained for several quarters.
Monetary aggregates are growing at slightly lower rates than in previous quarters. The decision by the Federal Reserve to increase interest rates partly explains the decrease.
According to the data, the inflation rate looks to close around 2.4%, a historically low rate for Mexico. Importantly, it is under the 3% target inflation rate which is set by Banxico.
The producer price index also shows a relatively low rate of growth coming in at 1.5% in the third quarter of 2015. However, this reduction is largely due to falling oil prices. Oil excluded, the producer price index shows a growth rate of 3.5% in the last quarter.
The Mexican stock exchange suffered no substantial change. Company profits and earnings remained in line with relative expectations.
Business and household credit has been growing above 3% per quarter. This activity may decrease as a result of the Fed’s decision to increase interest rates. It has already impacted Banxico.
The current yield curve spread shows no immediate signs of risk, at least in the short term.
Public debt to GDP reached 52% in the third quarter of 2015. The drastic fall in the price of oil, which served to decrease national revenue, is one primary cause of the recent increase in this ratio.
Mexico’s trade balance is trending towards a deficit which is contrary to what was seen during the same period the year prior. Export showed the greatest decline driven largely by the lower oil prices. Automobiles are the most important export product for Mexico.
