In the third quarter, the Mexican economy came in flat. It contracted 0.1 percent in the fourth quarter of 2018 and also contracted in the first two quarters of 2019.
Thus, with two consecutive quarters of negative growth, Mexico meets the Government/Bankster official criteria for being in a recession.
Unadjusted GDP dropped 0.3 percent from the third quarter of 2018 and 2019 is trending to be its worst annual performance in ten years.
In 2018, their economy grew 2 percent. This year, the most optimistic forecast is for 0.3 percent GDP.
Industrial production fell 0.1 percent in the third quarter from the second quarter. However, agricultural production increased 3.3 percent, and services ticked up 0.1 percent.
In response, the government of Mexico announced a $43 billion infrastructure plan to be rolled out from 2020 to 2024. This initiative hopes to increase growth by 4 percent a year.
The infrastructure plan includes a publicly funded oil refinery, roads, railways, ports, airports, and investment in water and tourism.
President Andrés Manuel López Obrador said the proposed infrastructure program is “hugely important because we need the private sector to participate in… growth.”
TREND FORECAST: The Mexican Economy will continue to decline in concert with declining global economies and terribly worsen in the prelude of the “Greatest Depression.”
And, as we have long forecast, with monetary stimulus measures mostly played out over the past ten years since the Great Recession, the fiscal stimulus measures will have little to no effect on reversing falling GDPs.