Mexican economy has slowed down significantly, with data suggesting that the country’s gross domestic output (GDP) expanded by 0.1% in the April-June period.
Industrial production was flat, while agriculture output decreased by 4% compared to the previous quarter, according to the country’s National Statistics Institute.
Economists blame President Andres Manuel Lopez Obrador, or AMLO, for the drop in output, saying his unpredictable policies have kept investors at bay.
Perhaps the government was aware of the slowdown. Last week, the country’s Finance Ministry set aside US$25 billion to stimulate the economy.
AMLO has been under fire in recent months, with opposition parties suspecting that he may follow in the footsteps of former Venezuelan president Hugo Chavez, whose economic measures have left the South American country in unprecedented economic chaos.
Soon after taking the oath of office, he scrapped plans for an already partially-built new airport in Mexico City and vowed to auction off a presidential plane in order to save money.
He announced cash transfers to the elderly and stopped funding a few government agencies, saying they were wasting tax-payers’ money.
AMLO’s Morena party has long been advocating for cutting bank fees and using central bank reserves for funding infrastructure projects.
US ratings agency Moody’s has called Mexico’s policymaking as “unpredictable”, and some investment banks suspect hat the economy could be in recession.