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LatinNews Daily - 08 June 2021

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In brief: Gross fixed investment still falling in Mexico

*Mexico’s national statistics institute (Inegi) has released new figures which show that gross fixed capital formation (GFCF) fell by 4.9% in the first quarter of 2021 compared with the same period in 2020. An Inegi report has attributed the fall in GFCF to lower levels of fixed capital investment in the construction sector over the period (-8.6%), which was not offset by a marginal (0.8%) increase in fixed capital investment in the manufacturing sector. However, Inegi highlights that GFCF increased by 1.4% in March compared with the previous month and that this rose to 2.3% in seasonally adjusted terms. March was the third consecutive month with positive monthly GFCF growth, leading Inegi to suggest that a recovery is under way. GFCF in Mexico fell by a sharp 18.2% year-on-year in 2020 due to the effects of the coronavirus (Covid-19) pandemic after it posted negative growth of -4.9% in 2019 amid falling investor confidence.