• In comparison with the last quarter of 2019, the previous forecast indicated a drop of 1.6%. Now, the revised figure brings a contraction of 1.2%;
• The March figures, however, show a significant impact of COVID-19 on the country’s economy.

The Gross Domestic Product (GDP) of Mexico had a slightly shallower drop in the first quarter of the year than previously estimated. The country’s economy contracted 2.2% in the first three months of the year, compared to the same period a year earlier, according to revised figures from the National Institute of Statistics and Geography (Inegi) published this Tuesday.

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In its preliminary estimate, released on April 30, the institution predicted that the contraction of the national economy in the first quarter would be 2.4% over the same period in 2019. In comparison with the last quarter of 2019, the previous forecast indicated a drop of 1.6%. Now, the revised figure brings a contraction of 1.2%.

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Mexico’s GDP, affected by the COVID-19 pandemic, had not registered a decline at such a severe annual rate since the 2009 crisis when it contracted 5% in the third quarter of that year.

The March figures, however, show a significant impact of COVID-19 on the country’s economy. In terms of months, during March of this year, the Global Indicator of Economic Activity (IGAE) registered a monthly fall of 1.3% with seasonally adjusted figures, which meant the worst figure since January 2009. The Institute added that in annual terms, the IGAE of March registered a real reduction of 2.6% in the reference month.

By activity groups, the secondary activities fell 4.9% and the tertiary ones fell 2%, while the primary activities had an 8.4% increase when compared to the same month of 2019.