Economic Downturn In Mexico May Lead To An Increase In Migration

Migration is often related to work opportunities, for when less work is in one place, people migrate to another area to find it. Because of this, there is a possibility to see more influxes of Mexican migrants to the US as the Mexican economy is experiencing her first downturn in a decade.

Mexico’s economy shrank for the first time in a decade last year, data showed on Thursday, as businesses reined in investment due to uncertainty over the economic policies of President Andres Manuel Lopez Obrador.

Adjusted for seasonal swings, Latin America’s no. 2 economy contracted by 0.1% in 2019 after growth of just over 2% the previous year, according to a preliminary estimate published by national statistics office INEGI.

Gross domestic product (GDP) was unchanged during the fourth quarter compared to the previous three months, INEGI said.

That was slightly better than the consensus forecast in a Reuters poll for a contraction of 0.1%.

Mexico’s economy struggled during the first year in office of Lopez Obrador, a leftist who promised to root out corruption and chronic inequality when he took office in December 2018.

Foreign investment has held firm in Mexico under his government, but domestic businesses have been more wary.

Gross fixed capital investment fell by 5.2% on the year during the first ten months of 2019, according to figures published by INEGI earlier this month. (source)

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