Mexico GDP shrinks 0.2 pct amid NAFTA uncertainty, disasters

MEXICO CITY – Mexico says its economy shrank 0.2 percent in the third quarter compared with the previous period amid uncertainty related to renegotiations of the North American Free Trade Agreement and a slowdown caused by natural disasters.

Alfredo Coutino is Latin America director at Moody's Analytics. He says the slowdown came after Mexico posted GDP gains of 0.7 percent and 0.6 percent in the first two quarters and confirms a "deceleration expected for the second half of the year."

Coutino adds that investment was hurt by fears that NAFTA talks could break off, and activity was "partially interrupted" by two deadly earthquakes and hurricanes in southern Mexico.

The government's National Institute of Statistics and Geography reported the contraction Tuesday. GDP was up 1.7 percent over the third quarter of 2016, however.