Mexico's GDP has a slightly shallower drop in the first quarter

In its timely estimate, released on April 30th, the institution had forecast that the contraction of the national economy had been 2.4% against the same period of 2019. The reviewed data brings a drop of 2.2%

mexican peso — Photo: Fernando Macias Romo/Shutterstock

LABS

26.May.2020 14:26 BRT

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.

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%.

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.