Mexican economy is heading for quarterly contraction as it barely grows in November


MEXICO CITY, Jan 24 (Reuters) – Mexico’s economy posted a mild recovery in November from October, according to data published on Friday Jan. 24, by the INEGI national statistics agency, but seemed headed for another quarterly contraction in the fourth quarter.

The economy, Latin America’s second largest, grew 0.1% in November from October and contracted 1.2% from November 2018, INEGI said.

“It’s a recovery compared to the prior month but it doesn’t change the trend,” said economist Jose Luis De la Cruz, who heads think tank Institute for Industrial Development and Economic Growth.

Mexico’s economy has struggled to gain traction under President Andres Manuel Lopez Obrador, who took office in December 2018 pledging to ramp up growth to 4% per year.

Instead, the economy slipped into a mild recession in the first half of 2019 and posted no growth in the third quarter.

“With the weak November print, the statistical carryovers for both sequential and annual quarterly growth remain negative: -0.31% for 4Q2019 and -0.20% for the full year,” said Goldman Sachs economist Alberto Ramos.

(Reporting by Anthony Esposito and Sharay Angulo; editing by Jonathan Oatis)