• STAGNATION: Mexico’s economy remained stagnant during the third quarter of 2019 reporting a weak 0.1% growth from the previous quarter and showing that last year’s goal by President Andrés Manuel López Obrador an average yearly GDP growth of 4% is elusive.
• NUMBERS: According to seasonally adjusted estimates by national statistics institute (INEGI), the 2019’s third quarter marginal growth of the Mexican economy broke a string of three quarters of negative growth in what some experts like Moody’s Alfredo Coutiño call a technical recession.
• CONFIDENCE: Despite the quarterly results, the International Monetary Fund (IMF) gave yesterday a strong sign of support for the Mexico by announcing the renewal of a flexible credit line for USD 61 billion (smaller than the past one) for the next two years lauding the country’s fundamentals.
• HELP: “The new arrangement..will continue to play an important role in supporting the authorities’ macroeconomic strategy by providing insurance against tail risks and bolstering market confidence”, the IMF said reminding of external risks like global market volatility, higher risk premia among others.
