The Gross Domestic Product (GDP) of the country, the biggest Latin American fashion market, might close 2019 with an increase between 0.2% and 0.7% according to the last predictions of Bank of Mexico.
The Mexican economy slows down and drags consumption. Retail sales of the biggest Latin American fashion market grow at a slower pace than the GDP. Unemployment, salary cuts and public spending cuts stat to affect the region’s economy.
The last predictions of Bank of Mexico published in August showed an increase between 0.2% and 0.7% of the Mexican economy for 2019. Rises went below the stablished forecast at the beginning of the year, when it was between 0.8% and 1.8%.
The Organization for Economic Cooperation and Development (Oecd) also forecasted a strong deceleration of the Mexican economy in 2019. Amongst the elements explained by the company are the industry strikes and political uncertainty. The Ocde forecasts the country’s growth in 0.5%.
The Bank of Mexico and the Oecd cut back its forecast fot the GDP of Mexico for 2019
However, the outlook of the government remains positive with a 2% rise despite economy deceleration in the first half of the year. Andrés Manuel López Obrador, president of the country, announced last summer an economic boost of 485,000 million Mexican pesos (29.9 million dollars).
The slow down in the economy also shows in consumption. The region stated last year with an increase in internal consumption of 2%, where its ebitda also increased 4.3%, according to the National Statistics Institute (Inegi).
However, last March indicators pointed to the first sign of weakness with a 0.7% drop compared to the previous year. It was the first declaration for the Mexican economy in years.
By origin of the goods and services, those of national origin better endured the pull of the last months, closing the first half of the year with a rise of 1.6% in June. However, the consumption of imported goods has registered two declines so far this year, with falls of 6.5% in March and 1.2% in June.