Mexico economy shows cooling inflation amid stagnant per capita growth

Mexico is experiencing a complex economic landscape characterized by cooling inflation but stagnant per capita growth and labor challenges. Annual inflation has dropped significantly, reaching levels near 3.12% to 3.37%, approaching the central bank's target. This decline is supported by restrictive monetary policies and stabilized fuel prices, though core inflation remains stickier.

While the GDP showed signs of recovery with a 1.5% growth in the second quarter, the benefits have not translated into significant per capita wealth. Projections suggest that if population growth exceeds GDP growth, the average inhabitant faces impoverishment. Furthermore, the economy has seen a trend of decelerating growth over the last four years.

The labor market presents additional difficulties. Despite manufacturing exports reaching historic highs, employment figures show a decline in the number of occupied persons compared to the previous year. Unemployment has risen, and a high percentage of the workforce earns only minimum wage, highlighting a gap between economic output and real wage improvements.