The president reiterated that he will not modify his growth forecast for this year, keeping it at 2% by the end of 2019.
President Andrés Manuel López Obrador said he is not very concerned about the update of the economic growth figure published this morning by the Inegi – which shows a stagnation of the national GDP – and assured that his strategy remains unadjusted.
“We care about economic growth, but we care more about development,” the president said in answering media questions during his morning conference this Friday.
The Mexican economy stagnated in the second quarter of the year by not registering variation, which meant an adjustment to the preliminary data released three weeks ago.
The National Institute of Statistics and Geography (Inegi) published this morning that the national economy registered no variation (0.0%) in real terms during the second quarter of the year, which implied a cut from the preliminary 0.1% released on the 31st of last July
López Obrador reiterated that he will not modify his growth forecast for this year, keeping it at 2% by the end of 2019: “It does not modify the growth expectation, because we are doing very well, very different from what the experts think, and then you see that are a bit persevering. “
He said that what his government is doing “is creating and distributing wealth, and what we are doing is a better distribution (…) Growing up may benefit a small group, but now it is growing and there is more and better distribution of Entering below. People have more purchasing power, more purchasing power, most Mexicans, that’s why I don’t care much about the announcement. ”
Inegi rectifies GDP data: Mexican economy stagnates
Inegi reported that growth in the second quarter was 0.0%, which counteracts the fear of a recession, but also confirms an economic slowdown.
The Mexican economy stagnated in the second quarter of the year by not registering variation, which meant an adjustment to the preliminary data released three weeks ago by the National Institute of Statistics and Geography (Inegi), when it indicated that the Gross Domestic Product ( GDP) had grown 0.1%.
According to seasonally adjusted figures, the national economy did not change in real terms during that period, a fact that counteracts fears about a technical recession, but confirms a slowdown in the economy.
On July 31, the Inegi revealed the preliminary figure, in which it showed a 0.1% progress driven by a better performance of the services sector.
At a year-on-year rate, GDP fell 0.8%, in original figures, it’s first negative reading since the fourth quarter of 2009 and also a more pronounced decline compared to the preliminary data indicating a 0.7% drop.
The Inegi indicated that the GDP of tertiary activities increased 0.2%, while that of primary schools decreased 3.4% and that of secondary schools increased 0.2% in the April-April quarter of this year compared to the previous quarter.
In its annual comparison, the Mexican economy reported a real increase of 0.3% in the second quarter of the current year compared to the same period of 2018; while for large groups of economic activities, the GDP of primary activities grew 1.7% and that of tertiary activities 1%, while that of secondary activities decreased 1.7% in the same period.
President Andrés Manuel López Obrador has promised a 2% growth in the economy for this year.
Despite presidential optimism, the Treasury launched a plan a week ago to stimulate economic activity, which will allocate an additional 485,000 million pesos to what is approved in the 2019 budget for infrastructure projects and to advance tenders.
Source: forbes mx
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