Economics
Mexican Economy Shrinks in Third Quarter in Blow to Recovery
- 3Q GDP -0.2% q/q compared to median estimate of no growth
- Decline in services sector contributed to a recovery halt
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Mexico’s economy shrank in the third quarter after new legislation banning labor outsourcing hit the services industry and coronavirus cases surged.
Gross domestic product declined 0.2% from the previous three-month period, compared to the median estimate in a Bloomberg survey of no growth. It’s the first contraction since the second quarter of 2020, when Mexico imposed its harshest set of restrictions to tackle the Covid-19 pandemic. From a year ago, GDP grew by 4.6%, according to preliminary data from the national statistics institute published Friday.