Mexico's growth slows to 0.4% in 4Q, 3.6% in 2022

By AP News

Mexico's economy slowed in the last quarter of 2022 but still managed to advance by 0.4%, bringing economic expansion for the full year to 3.6%

Mexico Daily Life

MEXICO CITY (AP) — Mexico’s economy slowed in the last quarter of 2022 but still managed to advance by 0.4%, bringing economic expansion for the full year to 3.6%, the National Statistics Institute announced Tuesday.

The country’s gross domestic product had expanded by 0.9% in the third quarter, but the effects of high domestic interest rates and inflation slowed growth in the fourth quarter.

Mexico’s central bank raised interest rates to 10.50% in December. Inflation remains high, at 7.82%, suggesting high rates will continue.

Moody’s Analytics Director Alfredo Coutiño said in a report that the economy is “en route to a soft landing in 2023,” predicting growth of 0.5% to 1% for the year. The central bank rpedicts growth of about 1.8%.

“Household consumption started to moderate because of the increasing cost of credit and high inflation,” Coutiño wrote.

IMPORTANT NOTICE AND DISCLAIMER

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter