Mexico's economy slowed in 3rd quarter

Mexico’s economy slowed in the third quarter, posting a slight contraction compared to the previous three months, though it was still well above the same quarter a year earlier

MEXICO CITY -- Mexico’s economy slowed in the third quarter, posting a slight contraction compared to the previous three months, but still well above the same quarter a year earlier, according to data released Thursday by its National Institute of Statistics and Geography.

Moody’s Analytics Latin America Director Alfredo Coutiño noted the effects of a surge of COVID-19 infections in August, supply-chain disruptions and a new law in Mexico aimed at eliminating outsourcing as among the factors responsible for the 0.4% quarterly contraction.

Mexico President Andrés Manuel López Obrador urged the public to “view calmly” the effects of the slowdown and said the economy would still finish the year with 6% growth due to growing employment and foreign investment. He said the number of workers now registered in the social security system was now higher than before the pandemic.

The economy’s third quarter performance was 4.7% above the same quarter last year.