The Mexican economy showed the first quarterly decline over the last 3 years on the background of a significant fall in industrial production.
According to preliminary estimations of the National Institute of statistics and geography of Mexico (Instituto Nacional de Estadística y Geografía, INEGI), Mexico’s GDP in the II quarter of 2016 decreased by 0.3%.
Economists previously surveyed by Reuters, had expected a decline of 0.2%. Before the downturn in the Mexican economy recorded in the second quarter of 2013, the Main negative factor was a decline of 1.7% reported in the manufacturing sector of Mexico in the period from April to June of this year. This is the worst quarterly dynamics for the Mexican industry since the first quarter of 2009
Many experts in the past few years have repeatedly stated that Mexico is one of the best investment locations among emerging markets.
Currently, however, there are a number of factors that increase uncertainty about future prospects and constrain the optimism of investors in relation to the second largest economy in Latin America.
Among them, the market participants, in particular, highlight the persistence of global uncertainty on stock markets, lower oil prices, continued fed rate hike, the possibility of the victory of Donald trump in the presidential election in the United States.
