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LatinNews Daily - 01 November 2021

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In brief: Mexico’s GDP posts quarterly contraction

* Mexico’s national statistics institute (Inegi) has released new figures which show the country’s GDP contracted 0.2% in the July-September 2021 quarter, in seasonally-adjusted terms compared with the previous quarter. This is the first quarterly decline since the Mexican economy began recovering from the coronavirus (Covid-19) pandemic, which struck in March 2020. The Q3 contraction was due to a 0.6% contraction in the tertiary sector (services) while the primary (agriculture) and secondary (manufacturing) sectors were both up 0.7%. In annual terms, Mexico’s GDP grew 4.8% in the third quarter of 2021 compared with the same quarter in 2020, with the primary sector up 0.5%; the secondary sector up 5.4% and the tertiary sector up by 4.5%. Despite the disappointing Q3 result, deputy finance minister Gabriel Yorio told reporters that economic recovery was continuing, and the government was maintaining its 6.3% GDP growth forecast for 2021.