Mexico’s economy enters technical recession

Jan 31, 2022, 10:40 AM | Updated: 4:29 pm

MEXICO CITY (AP) — Mexico’s economy entered a technical recession at the end of last year with two consecutive quarters of contraction despite annual growth of 5% for 2021.

Continuing issues with the global supply chain have been a problem for Mexican assembly plants. Despite COVID-19 infections falling late last year and there being few health-related restrictions, the economy struggled.

“The weakness of domestic production capacity has to do more with the structural damage caused by the pandemic and the lack of mitigation policies to help restore the level of productive investment,” said Alfredo Coutiño, Latin America director at Moody’s Analytics.

In the last three months of 2021, the economy dropped 0.1% compared to the previous three months, when it shrank 0.4%, according to the National Institute of Statistics and Geography.

Coutiño warned that the weakening in the latter half of last year could have consequences for growth in 2022, adding that government measures to limit competition have slowed private investment.

The 5% overall growth in 2021 followed an 8.4% contraction in 2020 when the coronavirus pandemic gripped Mexico.

The International Monetary Fund has forecast that Mexico’s economy will grow 2.8% this year, while other analysts have said 2.7%.

Mexico Treasury Secretary Gabriel Yorio said last week that the economy would continue feeling the effects of COVID-19 this year.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Police bring down European cocaine “super cartel”

BRUSSELS (AP) — Law enforcement authorities in six different countries have joined forces to take down a “super cartel” of drugs traffickers controlling about one third of the cocaine trade in Europe, the European Union crime agency said on Monday. Europol said 49 suspects have been arrested during the investigation, with the latest series of […]
2 hours ago
FILE - Chinese President Xi Jinping waves at an event to introduce new members of the Politburo Sta...
Associated Press

China’s Xi faces public anger over draconian ‘zero COVID’

SHANGHAI (AP) — Barely a month after granting himself new powers as China’s potential leader for life, Xi Jinping is facing a wave of public anger of the kind not seen for decades, sparked by his draconian “zero COVID” program that will soon enter its fourth year. Demonstrators poured into the streets over the weekend […]
2 hours ago
In this photo released by Xinhua News Agency, from left, Chinese astronauts for the upcoming Shenzh...
Associated Press

China rocket taking 3 to space station to blast off Tuesday

BEIJING (AP) — A rocket carrying three astronauts to finish building China’s space station will blast off Tuesday amid intensifying competition with the U.S., the government said Monday, The crew includes a veteran of a 2005 space mission and two first-time astronauts, according to the China Manned Space Agency. The Shenzhou-15 mission will take off […]
2 hours ago
A passerby tries to pass through a protest in Beijing, Sunday, Nov. 27, 2022. Protesters angered by...
Associated Press

China affirms zero-COVID stance, eases rules after protests

BEIJING (AP) — Authorities eased anti-virus rules in scattered areas but affirmed China’s severe “zero- COVID” strategy Monday after crowds demanded President Xi Jinping resign during protests against controls that confine millions of people to their homes. The government made no comment on the protests or criticism of Xi, the most widespread display of opposition […]
2 hours ago
FILE - Ukraine's President Viktor Yushchenko talks with US President George W.Bush, at the NATO Sum...
Associated Press

14 years on, NATO to renew a vow to Ukraine

BUCHAREST (AP) — NATO returns on Tuesday to the scene of one of its most controversial decisions, intent on repeating its vow that Ukraine — now suffering through the 10th month of a war against Russia — will join the world’s biggest military alliance one day. NATO foreign ministers will gather for two days at […]
2 hours ago
This photo mad available by Ukrainian doctor Oleh Duda shows the moment when lights at a hospital w...
Associated Press

Surgeons work by flashlight as Ukraine power grid battered

KHERSON, Ukraine (AP) — Dr. Oleh Duda, a cancer surgeon at a hospital in Lviv, Ukraine, was in the middle of a complicated, dangerous surgery when he heard explosions nearby. Moments later, the lights went out. Duda had no choice but to keep working with only a headlamp for light. The lights came back when […]
2 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
Mexico’s economy enters technical recession