2019 Anual Report
Economic Environment
THE MEXICAN ECONOMY OUTLOOK
To Mexico, 2019 represented a year of internal adjustments that, combined with global economic global slowdown and the contraction of international trade, as a result had a decrease in economy. In this sense, during 2019 the gross domestic product (GDP) decreased 0.1% in contrast with 2018.
As it is usual to expect in the first years of a change in administration, in 2019 the public investment was contained due to adjustments in the government programs and the new investment priorities. This situation caused the investment number during 2019 had a setback of 5.0% to annual rate. On the other hand, the Foreign Direct Investment (IED), gathered 33 billion dollars more than 2018.
During 2019 employment was affected by the low international economic rate and the inexistence nation economic growth, reflecting an unemployment rate of 3.5% annually compared with the 3.3% in 2018. According with data from the National Mexican Social Welfare Institute (IMSS), in 2019 48% less jobs were generated in contrast with 2018. Minimum wage presented an increase of 20% with $185.56.
The inflation rate during 2019 in Banxico’s objective of 3% +/- percentual point, ending in 2.83%, smaller figure compared to the 4.83% registered in 2018.
The Mexican currency finished 2019 with a price of 19.11 units per dollar, showing stability throughout 2019 for the peso encourage by the possible cease of trade due to tension between USA and China.
Thanks to the positive framework by the inflation, The Bank of Mexico ended 2019 with an objective rate of 7.25%. Even though the reference rate in Mexico is still low, it is among the highest international standard levels.
External Sector
