July 30, 20 - 4:35 pm - LABS

US and Mexico register historical economic drop in Q2

Not so good for GDP in North America. The United States Commerce Department announced on Thursday that the country’s GDP fell by -9.5% in the second quarter of 2020. According to the Bureau of Economic Analysis, the drop equals to an annualized rate of -32.9%, the standard measure used by U.S. officials, the worst on record.

The Mexican’s economy also had a historical drop: -17.3% from April to June, the National Institute of Statistics and Geography (INEGI) reported.

Because of the economic effects brought by the pandemic, for both North American countries it is the worst rate in historical series since the Great Depression, back in 1929.

To Expansión, Gabriela Siller, director of Economic Analysis Base Bank, said that the Mexican GDP will register five consecutive quarters declining, “something that has not been seen since 1985 when the big earthquake occurred in Mexico”.