Mexican Economy Crawls Out of Recession

Mexico appears to have crawled out of recession, with the latest data released by the country’s statistics agency showing the economy grew by 0.8 % in the first quarter of 2021.

The GDP growth may pick up steam in the days to come, analysts say, pointing to the ongoing immunization program and reopening of the US economy.

Mexico’s food and manufacturing industry is expected to get a boost from President Joe Biden’s infrastructure plan.

Its tourism sector is also hopeful of getting back to normal, with the US increasingly vaccinating its citizens, who have always represented a bulk of the tourists in the Latin American country.

Mexico’s economy suffered its sharpest contraction last year following the outbreak of the COVID-19 pandemic. Latin America’s second-biggest economy fell by 8.3 %, as lockdowns and travel restrictions halted economic activity for months on end.

However, foreign investors are less likely to make large bets on Mexican assets immediately, as they are waiting to see the effects of President Lopez Obrador’s recent economic policies, especially his ban on labor outsourcing and reforms in the oil sector.