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Mexico’s economy suffered its worst recorded contraction in the 2nd quarter of 2020 after being ravaged by the coronavirus pandemic, the national statistics institute said on Thursday, July 30.
Latin America’s second largest economy after Brazil’s fell by 17.3%, according to a preliminary estimate by the institute, which was created in 1983.
Mexico has the 4th highest number of coronavirus deaths in the world, after the United States, Brazil, and Britain, with over 45,000 recorded deaths since its first case was reported in late February.
The country’s gross domestic product (GDP) “fell 17.3% in real terms in the April-June 2020 quarter compared to the previous quarter, with seasonally adjusted figures,” said the INEGI institute in a statement.
In its year-on-year comparison, the Mexican economy has shrunk by 18.9%. It was the 5th successive quarter in which the economy has contracted.
The 2nd quarter was when Mexico was in the midst of a lockdown induced by the coronavirus outbreak.
President Andres Manuel Lopez Obrador said he expected things to quickly improve.
“There are other indicators that we are already advancing in July,” he said in his morning press conference.
The Central Bank predicted in May that the economy would fall by 8.3% to 8.8% in 2020 due to “the depth and duration of the consequences” of the pandemic.
Mexico was semi-paralyzed from the end of March when lockdown measures were imposed and only started gradually reopening in June.
Manufacturing, mining, and the automotive industry were the first sectors to reopen while restaurants and hotels have also been allowed to operate at a reduced capacity. – Rappler.com