The Mexican economy remains stable but lackluster.\u00a0 Growth for 2016 is projected at below 3%, as has been the case in the past few years.\u00a0 The industrial sector, unable to get off the ground, continues to lag behind.\u00a0 Demand in cyclical sectors indicates that new vehicle sales have increased, in sharp contrast to construction trends.<\/p>\n
Unemployment remains below 5% and informal employment remains on a slow, downward trend.\u00a0 Household and commercial credit growth have improved, if ever so tentatively.\u00a0 A portion of the increase in credit can be explained by the appreciation of debt denominated in foreign currency at a time when the Mexican peso is weak.<\/p>\n
Inflation, while slightly higher than in 2015, is below 3%.\u00a0 This is low, comparatively speaking, for a country that has had relatively higher inflation rates throughout its history.\u00a0 Annual inflation at the end of 2015 was 2.19%, the lowest in forty-six years.\u00a0 The challenge for Banxico is the devaluation of the Mexican currency. This is why, in February, Banxico intervened in the foreign exchange market to stem the peso\u2019s continual depreciation.\u00a0 Banxico also raised its interest rates in December in response to the Federal Reserve\u2019s action.\u00a0 This was followed by an increase of 50 basis points in February, partly to confront the foreign-exchange depreciation.<\/p>\n
The most negative development is the increase in public debt, which went up 14 percentage points from 2013 and reached 54% of GDP at the close of 2015.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Although Mexico\u2019s economic growth has remained stable since the third quarter of 2014, it slowed some during the fourth quarter of 2015, compared to the preceding quarter. It is projected that the Mexican economy will grow at a similar pace during 2016. <\/p>\n","protected":false},"author":106,"featured_media":803,"menu_order":0,"template":"","meta":{"anio":"2016","mes":"January-March","id_estadisticas":"stat-mexico-january-march-2016","newsletter_link":"https:\/\/trends.ufm.edu\/en\/wp-content\/uploads\/2016\/06\/Informe4-MEXICO-ENG_8Jun.pdf","portada_informe":"https:\/\/trends.ufm.edu\/en\/wp-content\/uploads\/2016\/12\/mexico2016q1.jpg","subtitulo":"Mexico Q1 2016 Report","footnotes":""},"tags":[107,9,88],"class_list":["post-792","newsletter","type-newsletter","status-publish","has-post-thumbnail","hentry","tag-107","tag-january-march","tag-mexico"],"_links":{"self":[{"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/newsletter\/792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/newsletter"}],"about":[{"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/types\/newsletter"}],"author":[{"embeddable":true,"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/users\/106"}],"version-history":[{"count":0,"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/newsletter\/792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/media\/803"}],"wp:attachment":[{"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/media?parent=792"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trends.ufm.edu\/en\/wp-json\/wp\/v2\/tags?post=792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}