Mexican economy rebounds 12.1% in third quarter

The Mexican economy recorded a 12.1% rebound during the third quarter of the year, following the historic slump noted in the period between April and June due to the almost total shutdown of activities as a result of the pandemic.

The news was released on Thursday by the INEGI, which revised upwards its forecast for the end of October which estimated a 12% rebound between the months of July and September.

President Andrés Manuel López Obrador referred to the report this morning in his press conference, boasting that his prognosis of a V recovery was "fulfilled".

"I can boast, our prognosis for the third quarter was met," he said in the morning.

It should be noted that this is the largest growth in the history of the institute, but that occurs after the fall of 17% in the second quarter, which also set a record.

According to the institute's report, secondary activities such as manufacturing and industry reached a growth of 21.7% and primary activities 8%, while commerce and services saw an increase of 8.8%.

However, in the year-to-year comparison, Mexico's GDP recorded a drop of 8.6%, in line with the latest forecasts of Finance Minister Arturo Herrera.

In any case, the economic impact of the pandemic could be even stronger if the resurgence of coronavirus infections continues throughout most states, something that has led the Mexico City government to restrict business hours and warn that it is "on the verge" of returning to the red light, which would mean a severe blow to the labor market.