López Obrador denies that Mexico is in a recession despite the contraction of the last two quarters

The president of Mexico, Andrés Manuel López Obrador, denied that the country is in a recession despite the contraction of the last two quarters that left economic growth at 4.8% for 2021, below the 6% expected by the Government.

“The economy is growing, there can be no recession if January, this month, is one of the months in which more jobs were created in the last 20 years. What recession?”, declared the president in his daily press conference.

His statements come after it was revealed that Mexico’s Gross Domestic Product (GDP) grew 4.8% in 2021, according to preliminary original figures from the National Institute of Statistics and Geography (Inegi).

Economists have warned of a “technical recession” because Mexico decreased by 0.1% quarterly between October and December, which is added to the fall of 0.4% from July to September, with which it spins two negative quarters.

But López Obrador assured that “your formula does not applybecause, according to him, Mexico it had a growth trend until the appearance of the omicron variant of COVID-19.

“I am satisfied because it continues to grow. We are coming out of the crisis, fortunately we already have indicators that the new variant of COVID-19 is losing strength because that is what prevented us from reaching 6% growth”, stated the president.

Although the private sector expects a growth of 2.27% by 2022, as revealed on Tuesday by the Bank of Mexico (Banxico) survey, the president asserted that the economy will grow 5% this year, in 2023 and 2024.

Although he later clarified that his goal is to achieve an average annual growth of 2% throughout his six-year term. “I have information and I am also optimistic, I want us to do well”, he stated.

On the other hand, the president requested that “You should not only see the growth data“because your government”you also have to think about well-being”.

The president criticized that during the 36 years of what he calls “neoliberal period” there was economic growth, but with inequality, according to graphs of the world Bank and the Organization for Economic Co-operation and Development (OECD) that he exhibited at his lecture.

“Now also change that technocratic approach that does not necessarily have to do with the well-being of the people, with the well-being of the people”, he commented.

He also defended his management of the pandemic in Mexicowhich accumulates almost five million cases and close to 307,000 deaths from COVID-19, the fifth highest figure in the world in absolute numbers.

The president assured that Mexico It ranks ninth in the world in vaccines applied and 24th in deaths per capita.

“It may be that due to COVID-19 we have less growth, but more equality. Now it is reaching more of the poor than before. We are living in a less unequal country than when the neoliberal policy was applied, but we are also growing“, he claimed.