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Mexico's GDP plunges 18.7 pct in Q2 year on year

Xinhua News,MEXICO CITY
2020-08-27 03:40

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MEXICO CITY, Aug. 26 (Xinhua) -- Mexico's gross domestic product (GDP) fell 18.7 percent in the second quarter of 2020 compared to the same period of 2019, weakened by the novel coronavirus (COVID-19) pandemic, the National Institute of Statistics and Geography (Inegi) said on Wednesday.

According to Inegi's latest revised and seasonally adjusted figures, GDP in the second quarter dropped 17.1 percent compared to the first quarter.

The independently-run state statistics agency issued a preliminary forecast on July 30 of an 18.9 percent fall in GDP year on year and a 17.3 percent drop between the first and second quarters.

The Mexican economy, the second largest in Latin America after Brazil, saw an accumulated 10.1 percent contraction in GDP in the first half of the year, according to Inegi.

Mexico's Scotiabank Financial Group noted the definitive figures continue to represent record drops in economic activity due to lockdown measures that idled industry and services.

Given the persistent outbreak, "we foresee continued economic weakness, despite the gradual reopening of economic sectors starting in May, and it will prevail to the end of the year to a lesser extent," the group said.

"The outlook for subsequent quarters is still subject to a high degree of uncertainty, where the conduct of economic policy represents one of the main factors that can stand in the way of a speedy recovery," the group added.

The International Monetary Fund has forecast a 10.5 percent drop in GDP for Mexico in 2020, due to the pandemic.
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