The impact of the COVID-19 health crisis has been significant

Industrial production in Mexico falls by 3.7% per year in November

photo_camera PHOTO/PIXABAY - Mexico City

The coronavirus crisis led Mexico's industrial production to fall by 3.7% last November compared to the same month in 2019 due to the fall in all sectors, the National Institute of Statistics and Geography (Inegi) reported on Monday.

The figures are the result of falls in the construction industry (7.8%), the generation and transmission of electricity, water and gas (7%), mining (2.4%) and manufacturing (2.1%), the agency explained in a statement.

In seasonally adjusted figures, industrial activity grew by 1.1% last November compared to the previous month due to the rise in construction (2.2%) and mining (0.1%), while manufacturing remained unchanged and electricity generation fell by 2.3%.

Because of the pandemic, the authorities ordered a halt to all non-essential activities in April and May. In June the so-called "new normal" began with a gradual opening of the economy and social activities.

Thus, in the first eleven months of the year, industrial activity fell by 10.7%, due to the decline in construction (17.7%), manufacturing industries (11%), electricity generation (5.4%) and mining (1%).

Industrial production in Mexico fell by 1.8% in 2019 compared to 2018 due to the decline in construction and mining. Mexico's gross domestic product (GDP) grew by 2.1% in 2018 and by 2.1% the previous year. In contrast, GDP contracted by 0.3% in 2019, a substantial drop.

By 2021, the pandemic - which in Mexico totals more than 1.5 million cases and 133,706 deaths - has led most analysts and financial bodies to put the fall in GDP above 8%.

Mexico's GDP fell by 18.7% in the second quarter of the year. While in the third quarter it rose by 12.1% compared to the previous three months, although in the year-on-year comparison it fell by 8.6%.

According to official figures, more than a million formal jobs have been lost, although in recent months tens of thousands of jobs have been recovered.

More in Economy and business