The Mexican economy faltered in 2001, in sharp contrast both to its performance in 2000, when it expanded by 6.9%, and to the growth target of 4.5% announced at the beginning of the year. Following expansions averaging 5% over the previous five years, productive activity shrank by 0.3% in 2001, causing per capita GDP to slip by 2%. The slowdown was caused by weakening external demand, with both external trade and investment shrinking, while private consumption remained relatively buoyant thanks to real wage growth and burgeoning consumer credit. Remittances from Mexicans living abroad nudged gross national income up by 0.4%. Against this recessionary backdrop, the pace of inflation eased, and the financial and foreignexchange markets remained stable.

Related Subject(s): Economic and Social Development
Countries: Mexico
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