Mexico’s economy shrank 0.4pc in Q3

MEXICO CITY (AFP) – Mexico’s economy, the second largest in Latin America, shrank by more than initially estimated in the third quarter of the year amid a resurgence in COVID-19 cases, data showed on Thursday.

Gross domestic product (GDP) fell by 0.4 per cent in the three months to September from the previous quarter, compared with a preliminary estimate of a 0.2 per cent decline, the national statistics agency INEGI said.

The contraction followed four consecutive quarters of growth in an economy rebounding from a deep slump triggered by the coronavirus pandemic.

On a year-on-year basis, economic growth slowed to 4.5 per cent in the third quarter, INEGI said.

Even so, the government is sticking to its forecast of economic growth of around six per cent for the whole of 2021.

Sergio Munoz turns the crank on a traditional organ, as his assistant looks for residents in their homes willing to donate a few pesos, in the Roma Norte neighbourhood of Mexico City. PHOTO: AP