During the first quarter of the year, Mexico’s Gross Domestic Product (GDP) contracted 2.2% annually, according to the figure revised by The Inegi, a shallower drop than previously reported 2.4%.
In its annual comparison, the fall in the industrial sector was 3.5%, the services sector suffered a 1.2% drop while activities including livestock, fishing and mining rose 1.1%.
This annual fall in GDP is the fourth in a row and the highest since the fourth quarter of 2009, the year of the global financial crisis, when the economy collapsed 5%.
In its comparison against the previous quarter (October-December) GDP fell by 1.2%, accumulating four quarters with declines; the figure previously disclosed by the Inegi was 1.6%.
The hardest-hit activities were industrial activity with a contraction of 1.2% followed by the services sector, which fell 0.9%. Primary activities rose 1.7%, compared to the previous immediate quarter.
In the first quarter of 2020, Gross Domestic Product #PIB recorded a decrease of (-)1.2% compared to the previous quarter and had a real decline of (-)2.2% in its annual benchmark (desest.) #ComunicadoINEGI https://t.co/mXssa4vwzP pic.twitter.com/yfbt7gXY85
— INEGI INFORMA (@INEGI_INFORMA) May 26, 2020
The GDP of cultural and sporting leisure services and other recreational services had the worst performance in the first quarter, as it decreased by 14.06%.
Temporary accommodation and food and beverage preparation services collapsed by 10.95%, followed by retail trade, with a 2.25% decline
Due to the impact of the PANdemic by COVID-19, a deeper GDP contraction is expected during the second and third quarters.
Economic activity
Inegi also reported that the Global Indicator for Economic Activity (IGAE) showed a 1.3% decrease in real terms in the third month of 2020 compared to the previous month, its strongest fall since January 2009.
By large groups of activities, industrialists fell 3.4% and services-related groups fell 1.3%; by contrast, agricultural farms grew 11.1% in March 2020 compared to the previous month.
In annual terms, IGAE recorded a real 2.6% reduction in March.
The Global Economic Activity Indicator #IGAE had a decrease of (-)1.3% in real terms in March 2020 compared to the previous month (desest figures). In its annual comparison, it recorded a real decrease of (-)2.6%. #ComunicadoINEGI https://t.co/S8NnhRxm9H pic.twitter.com/wiOlW6s3mm
— INEGI INFORMA (@INEGI_INFORMA) May 26, 2020
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