AMLO insists that the economy will grow 6% despite falling GDP in the third quarter: “That is my forecast”

AMLO trusts the economy will grow 6% despite falling GDP in the third quarter (Photo: Reuters / Edgard Garrido)
AMLO trusts the economy will grow 6% despite falling GDP in the third quarter (Photo: Reuters / Edgard Garrido)

President Andrés Manuel López Obrador assured that, despite the estimate of the National Institute of Geography and Statistics (Inegi), which showed a contraction 0.4% of Mexico’s economy in the third quarter of 2021, the goal of a 6% increase in the country’s Gross Domestic Product (GDP) will be reached at the end of the year.

During the morning press conference on Thursday, the Tabasco assured that a sample of this is the recovery of formal jobsIt even pointed out that the number of workers registered in the Mexican Social Security Institute (IMSS) that was had before the COVID-19 pandemic has already been overcome.

“The economy is growing and the forecast that we will grow 6% this year will be fulfilled and yes it was a ‘V’, there are several indicators but I think the best is that of the creation of formal jobs and, another indicator that helps a lot, is foreign investment.

The president said that never before had the economy recovered so quickly after a deep recession (Photo: Reuters / Gustavo Graf)
The president said that never before had the economy recovered so quickly after a deep recession (Photo: Reuters / Gustavo Graf)

There is a record, there have never been so many workers registered with social security, never. Not only have we already exceeded the number of workers that we had before the pandemic, but we are about to reach 21 million workers registered with Social Security. We fell with the pandemic in 1,500,000 jobs

On the other hand, the president said that never before had the economy recovered so quickly after a deep recession. In this sense, he pointed out that in addition to the new jobs, the average salary level is higher.

“In other crises, which were not so deep, nor this was achieved in such a short time. If we look at the months, neither in the 1995 crisis nor in others had such a rapid recovery been achieved. This is unique because there have never been so many registered workers and also the average salary level is the highest that has been had, ”added López Obrador.

Although the Inegi figure exceeded the estimated fall for the third quarter of the year, the annual growth of 6.1% remains in force, since in original figures, the Mexican GDP grew 4.5% year-on-year in the third quarter and accumulates in the first nine months of the year a growth of 6.1 percent.

Foto: Susana Gonzalez/Bloomberg
Foto: Susana Gonzalez/Bloomberg

However, the agency also announced that the National Consumer Price Index (INPC) reached 7.05%, in the first half of November compared to 6.36% in the second half of October. This is its highest record since April 2001.

In addition, he specified that specified that the underlying price index (which is obtained by eliminating goods and services whose prices are more volatile from the INPC calculation), had an increase of 0.15% biweekly and 5.53% annually. For its part, the non-core price index rose 2.29% fortnightly and 11.68% annually.

Meanwhile, according to the Institute, the rise is mainly due to the increase in electricity rates and the prices of some agricultural goods. Inside of the non-core price index, the prices of agricultural products rose 2.17 percent biweekly and those of the energy and tariffs authorized by the government They did so by 24.16%, to a greater extent as a result of the conclusion of the subsidy to the summer electricity tariff program that was applied in 11 cities in the country, he highlighted.

Other products and services that increased in price and thus included the increase in inflation were: green tomato (fortnightly increase of 42.06%); fresh chili peppers (19.77%); air transport (7.08%); tomato (3.92%); chicken (2.76%); services in lunch boxes, inns, torterías and taquerías, (0.39%); beef (0.77%); automobiles (0.79%); as well as other vegetables and legumes (4.83%).

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