Mexico.- According to the National Institute of Statistics and Geography (Inegi), the Mexican economy accelerated its deterioration in the first quarter of the year by falling -1.6% from the previous three months.
If the fall were confirmed, it would be the strongest contraction for Gross Domestic Product since the second quarter of 2009, when the world was suffering the effects of the subprime crisis in the United States.
Compared to the previous immediate quarter, gdp for secondary and tertiary activities fell -1.4% individually, while primary activities increased by 0.5% in the first quarter of 2020.
The Mexican economy is lousing into a deep recession due to the effects of coronavirus, which has forced the shutdown of activities in almost the entire economy. BBVA points out that the crisis could leave nearly one million people out of work in case the government fails to implement effective support measures.
Against this backdrop, Mexican President Andrés Manuel López Obrador said he was optimistic about an early revival and pointed out his government’s strategy to overcome the crisis: not resorting to debt, not raising taxes, not raising gasoline prices, strengthening austerity policy, intensifying the fight against corruption, supporting more people, and allocating more funds to microcredits and welfare actions.
«I am optimistic and think we are going to make it from both the health and economic crises,» he said at his regular morning conference.