Mexico & Nafta - November 2017 (ISSN 1741-444X)

Earthquake impact: On 12 October Mexico’s central bank (Banxico) said it expects that the earthquakes and hurricanes that affected Mexico in recent weeks will only have a “temporary and moderate” impact on the domestic economy. A Banxico statement said that in its latest board meeting, its directors agreed that despite the destruction caused by the natural disasters “it is estimated that the effects of these events on economic activity and inflation will be temporary and moderate”. However, the board did not rule out the possibility that the immediate negative economic impact of the disasters could lead to a downwards revision of the GDP growth forecast for the year. Back in August, Banxico projected GDP growth of 2%-2.5% for the year, up from the 1%-2.5% it had previously forecast. 

Record auto production: On 9 October, Mexico’s automotive industry association (Amia), which groups the automobile manufacturers that operate in the country, reported that the sector produced 307,147 vehicles in September, a 7.7% year-on-year increase. The sector’s exports reached 270,899 units, a 15% increase compared with September 2016. The September production results bring the accumulated production figures for the first nine months of the year to 2.82m vehicles, a 9.8% year-on-year increase and a new record figure. The accumulated export figure for the first nine months of the year also reached a new record with 2.28m units shipped, an 11.5% year-on-year increase. 

Mexico’s GPD
Percentage variation (year-on-year)

Mexico’s Inflation Rate
Percentage variation (year-on-year)

Mexico’s Unemployment Rate
Economically active population

Source (all Highlights tables): National Statistics Institute (Inegi)