Mexico’s economy slips in December, raising concerns of a recession

Mexico’s economy shrank 0.2 percent in December, compared to the previous year, official estimates showed on Tuesday. The preliminary estimates also show that the country might have slipped into a recession in the second half of 2021, according to Reuters.

In the second half of the year, secondary activities, including manufacturing, increased by 0.4 percent compared to the previous year, according to the national statistics agency INEGI. Tertiary activities, however, fell by 1.3 percent.

The country’s economy shrank in October. While the estimates for November are not yet published, preliminary data shows that the economy barely grew compared to November 2020.

Mexico’s GDP contracted in the third quarter of 2021, indicating that the economy may have also contracted in the last quarter of the year.

The Mexican peso also declined 0.6 percent, indicating a sluggish performance at the end of 2021.