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Mexico’s Economy Contracted in 2019 - The Wall Street Journal

Mexico’s Economy Contracted in 2019 - The Wall Street Journal

Mexico President Andrés Manuel López Obrador greeted workers during a visit at a plant of cement maker CEMEX in Monterrey, Mexico, Jan. 25 Photo: daniel becerril/Reuters

MEXICO CITY—Mexico’s economic activity contracted slightly in 2019 in its weakest showing in a decade as industrial production fell and services slowed.

Gross domestic product, a broad measure of output of goods and services, was unchanged in the fourth quarter from the previous quarter in seasonally adjusted terms, and declined 0.1% for all of 2019, the National Statistics Institute said Thursday.

Sluggish industrial output, especially in construction and oil, falling business investment, and a slowdown in services and employment contributed to the country’s weakest economic performance since the recession of 2009.

GDP grew 2.1% in 2018.

Mexican growth typically weakens the first year of a new administration as the government sets different spending priorities. But investors were discouraged last year when President Andrés Manuel López Obrador canceled a $13 billion Mexico City airport that was already partly built and put a freeze on new oil auctions.

The slowdown in global trade and a decline in U.S. manufacturing output also proved a drag on Mexico’s export-driven economy.

Industrial output fell 1% in the fourth quarter from the third, while services rose 0.3% and agricultural production was up down 0.9%.

Revised fourth-quarter GDP data are due on Feb. 25.

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2020-01-30 12:59:00Z
https://www.wsj.com/articles/mexicos-economy-contracted-in-2019-11580389181
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