Mexico’s economy contracted 17.3 percent in the 2nd quarter compared to the previous 3 months, putting it on course to be among the greatest emerging market casualties of the coronavirus pandemic.
It is the fifth quarterly contraction in a row, moistening hopes of a fast, V-shaped healing. Compared with the very same duration in 2015, the decrease was 18.9 percent, the greatest drop on record, according to initial information from the state stats workplaceInegi
“This is a horrendous number, but hardly a surprise,” Andr és Abad ía at Pantheon Macroeconomics composed in a note.
Although green shoots were now emerging, he included: “The deterioration of the labour market has been severe and the pandemic is far from controlled.”
The second-quarter outcome resembled market expectations. The May financial activity index (IGAE), a GDP proxy, recently revealed that “even with a relaxation of confinement measures . . . the economy still worsened”, HR Ratings stated.
President Andr és Manuel López Obrador preserved that the economy has actually now touched bottom. “The worst is behind us. Our strategy has worked. Now we are recovering,” he informed his day-to-day press conference on Thursday.
But Mexico appears on course for its worst economic downturn in a century, with the IMF …