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Mexico revises Q1 GDP to fall 3.6 pct year on year

MEXICO CITY
2021-05-27 05:51

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MEXICO CITY, May 26 (Xinhua) -- Mexico's gross domestic product (GDP) fell 3.6 percent in the first quarter of 2021 year on year, the National Institute of Statistics and Geography (Inegi) said on Wednesday, revising its initial estimate of a 3.8 percent drop.

According to a breakdown by economic segments, the services sector plummeted 4 percent between January and March of this year compared to the same period of 2020, when the novel coronavirus disease first emerged in Mexico.

Industrial activity, which is closely linked to the United States, fell 2.7 percent in the first quarter year on year, according to Inegi's revised figures.

Agricultural activity, meanwhile, grew 2.8 percent in the first quarter, the autonomous statistics agency said in a statement.

Inegi's seasonally adjusted figures showed a year-on-year drop of 2.8 percent, down from the 2.9 percent estimated earlier.

Compared to the previous quarter, GDP in the first quarter saw 0.8 percent growth, compared to the 0.4 percent originally estimated.

In response to Inegi's definitive GDP results, Barclays investment bank upgraded its 2021 growth forecast for Mexico to 6 percent, up from 5 percent.

"The revised first quarter GDP report was stronger than we anticipated and suggests that the economy will be returning to its pre-pandemic levels sooner than anticipated," Barclays Chief Latin America Economist Marco Oviedo said on Twitter.

Mexico's economy, the second largest in Latin America after Brazil, plummeted 8.3 percent in 2020 due to the effects of COVID-19.

The Finance Ministry has forecast 5.3 percent growth for 2021 as productive activities pick up pace and the vaccination campaign progresses.
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