Mexico Q4 GDP Growth Revised Down to 0.2% QoQ

The Mexican economy advanced 0.2 percent on quarter in the three months to December of 2018, slowing from a downwardly revised 0.6 percent expansion in the previous period, lower than a preliminary estimate of 0.3 percent and in line with market expectations. The slowdown was mainly due to a contraction in the industrial sector.
INEGI |Stefanie Moya | 2/25/2019 2:38:05 PM
The industrial sector shrank 1.2 percent, compared with a preliminary reading of a 1.1 percent contraction and after a 0.2 percent expansion in the third quarter of 2018. Output declined in utilities (-1.4 percent from 1.5 percent in Q3) and dropped further in mining (-4 percent from -2.2 percent) and construction (-1.7 percent from -0.4 percent).  

The services sector increased 0.7 percent, below an initial estimate of 0.8 percent but higher than a 0.6 percent gain in the prior period. Faster growth was seen in retail trade (1.0 percent from 0.7 percent); information & communication (3.5 percent from 0.9 percent); and real estate (0.4 percent from 0.2 percent). Also, output rebounded in education (0.9 percent from -0.2 percent) and shrank less in corporate services (-1.4 percent from -2.0 percent).  On the other hand, output fell in wholesale trade (1.0 percent from 2.1 percent); cultural & sports activities (-1.5 percent from 2.2 percent); and health & social assistance (-0.3 percent from 0.5 percent). Additionally, output growth eased in transport & storage (0.1 percent from 0.5 percent); finance and insurance (1.3 percent from 4.2 percent); professional, scientific and technical services (0.3 percent from 0.4 percent); business services (0.1 percent from 1.2 percent) and food & accommodation services (0.1 percent from 0.5 percent). 

The primary sector grew 2.2 percent, above than a preliminary reading of 1.9 percent and above a 1.4 percent gain in the three months to September. 

Year-on-year, the gross domestic product expanded 1.7 percent in the last quarter of 2018, below an earlier estimate of 1.8 percent and compared to a 2.5 percent growth in the previous period. Figures also came worse than market expectations of a 1.8 percent rise. 

In 2018, the economy grew 2.0 percent over a year earlier.

Mexico Q4 GDP Growth Revised Down to 0.2% QoQ