Mexico economy fares better than first estimated at start of 2020

Mexican economic activity contracted by less than initially estimated during the first quarter as the coronavirus began to have an impact, but the economy was considerably weaker coming into 2020 than previously reported, data showed on Tuesday.

Figures from national statistics agency INEGI showed that Latin America’s second-biggest economy shrank by 1.2% during the January-March period in seasonally adjusted terms.

Growth in activities like farming and forestry partly offset declines in manufacturing and services during the quarter, producing a result that was substantially better than a decrease in activity of 1.6% estimated by INEGI on April 30.

However, INEGI revised its previous figures to show the economy contracted by 0.6% during the last three months of 2019 and by 0.2% in each of the two prior quarters. The economy grew by 0.2% during the first quarter of 2019, the data showed.

The agency previously said the economy contracted by a tenth of a percentage point in each of the four quarters last year.

Mexico did not apply lockdown measures to curb the spread of the novel coronavirus until late March, so the impact of the pandemic will weigh heavily on the second quarter.

The lockdown brought key sectors of Mexican industry to an almost complete standstill, and analysts estimate the economy will contract by up to 10% or more during 2020.

A breakdown of INEGI’s first-quarter data showed that primary activities such as farming, forestry, fishing, and mining grew by 1.7% from the previous quarter.

Secondary activities, which include manufacturing, contracted by 1.2%, while tertiary activities, which encompass the service sector, declined 0.9%, the figures showed.

In unadjusted terms, the economy shrank 1.4% compared to the same period a year earlier. That figure was 0.2 percentage points better than the initial estimate.

Reporting by Dave Graham; Editing by Bernadette Baum and Chizu Nomiyama

Mexican economic activity contracted by less than initially estimated during the first quarter as the coronavirus began to have an impact, but the economy . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • puerto-vallarta-rainfall-hurricane-flossie-july-2025Puerto Vallarta braces for torrential rains as Hurricane Flossie gains strength Puerto Vallarta faces a high risk of flooding as Hurricane Flossie intensifies in the Pacific. Torrential rains and overwhelmed drainage systems pose major challenges for the city. Puerto Vallarta, a city wedged between the Sierra Madre mountains and the Pacific Ocean, is no stranger to dramatic weather shifts—but this summer, the skies are testing the…
  • raw-sewage-playa-los-muertos-puerto-vallartaMore Raw Sewage Dumping at Playa Los Muertos Appear to Come From Local Hotel Business owners in Puerto Vallarta are demanding action after raw sewage was discovered leaking onto Playa Los Muertos, raising public health and tourism concerns. A raw sewage leak at Playa Los Muertos in Puerto Vallarta has sparked outrage among local tourist service providers and business owners, who say the contamination is driving away visitors and…
  • hurricane-flossie-strengthens-july-1-2025Hurricane Flossie will bring tropical storm conditions to parts of Guerrero, Michoacán, Colima, and Jalisco Hurricane Flossie intensifies off Mexico's Pacific coast with winds near 90 mph. Heavy rain, flooding, and tropical storm conditions expected in parts of Guerrero, Michoacán, Colima, and Jalisco. Hurricane Flossie continued to intensify early Tuesday morning as it moved west-northwestward off the coast of southwestern Mexico, prompting tropical storm warnings and watches across multiple states.…
  • Where do foreigners come from and where do they live in MexicoMexico City Protest on July 5 Challenges Gentrification and Airbnb’s Impact on Housing Residents of Roma and Condesa will gather at Parque México on July 5 to protest gentrification, rising rents, and Airbnb’s effect on local housing. This Saturday, July 5, Mexico City will witness its first organized citizen protest against gentrification—a peaceful but urgent gathering taking place at 3:30 p.m. at the Lindbergh Forum in Parque México,…
  • cabo-corrientes-warning-canceled-hurricane-flossieCabo Corrientes Spared as Hurricane Flossie Warning Lifted, But Pacific Coast Still at Risk Cabo Corrientes no longer under tropical storm watch as Hurricane Flossie nears Mexico's Pacific coast, with dangerous winds and heavy rains threatening Michoacán, Colima, and Jalisco. The tropical storm watch for Cabo Corrientes was officially canceled Tuesday, offering a measure of relief for the scenic coastal town as Hurricane Flossie continues to churn off Mexico’s…
  • no-damage-jalisco-hurricane-flossieNo Damage Reported in Jalisco as Hurricane Flossie Moves Away While Mexico's Weather Service predicted heavy rains, Hurricane Flossie causes no damage along Jalisco’s coast. The Category 3 storm brings light rain and moderate waves as it moves away from the region. The coasts of Jalisco remain calm and largely unaffected following the passage of Hurricane Flossie, a powerful Category 3 storm that is now…
  • cancun-2025-sargassum-beaches-and-activitiesSargassum won’t ruin your Cancun vacation, there are plenty of clean beaches and tourist activities As the 2025 sargassum season continues through September, visitors to Cancun can still enjoy clear beaches like Playa Delfines and Playa Caracol. As the 2025 sargassum season intensifies across Quintana Roo, tourists are finding it more difficult to enjoy the region’s iconic white-sand beaches without encountering the unsightly brown seaweed. While the influx of sargassum…
  • tropical-storm-flossie-hurricane-mexico-pacific-coastTropical Storm Flossie to Strengthen into Hurricane as It Tracks Along Mexico’s Pacific Coast Tropical Storm Flossie is expected to become a Category 2 hurricane by July 2 as it moves parallel to Mexico’s Pacific coast, bringing dangerous rainfall, wind, and surf. Tropical Storm Flossie is on the verge of forming from Tropical Depression Six-E and is forecast to strengthen rapidly into a hurricane as it parallels Mexico’s southwestern…
  • oregon-murder-fugitive-extradited-puerto-vallartaFugitive Wanted for 2008 Oregon Homicide Captured in Puerto Vallarta and Extradited to U.S. Jesús Rodríguez Borrayo, a fugitive for 17 years, was extradited from Mexico to Oregon for his role in a 2008 drive-by shooting that left one dead. He was located in Puerto Vallarta. A man wanted for murder and other violent crimes in the United States for nearly two decades has been extradited after being found…
  • tropical-wave-7-floods-bacalar-chetumal-emergency-responseTropical Wave Floods Bacalar and Chetumal as Navy and Army Activate Emergency Plans Torrential rains from Tropical Wave 7 flood Bacalar and Chetumal, prompting emergency response from the Navy and Army. Several towns remain isolated in southern Quintana Roo. Torrential rains caused by Tropical Wave Number 7 have flooded multiple communities in southern Quintana Roo, prompting a joint emergency response from Mexico’s Navy and Army. Authorities activated their…
Scroll to Top