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

  • 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,…
  • protests3Mexico City Protests: There is a fine line between anti-gentrification and xenophobia The line between anti-gentrification and racism is clear if you choose to see it: genuine activism targets policy and practice, not nationality or ethnicity. I have lived in Mexico for two decades, and I have never witnessed the level of anti-American sentiment that exists today. All of it is tied to the buzzword "gentrification," a…
  • puerto vallarta lettersPuerto Vallarta needs a new image to create meaningful reasons for travelers to visit Business leaders at Jalisco Tourism Secretariat forums stressed the need for renewing Puerto Vallarta image and diversifying attractions to appeal to national and international markets. Local business leaders and tourism specialists agreed this week that Puerto Vallarta needs a fresh look and a broader range of attractions to compete at home and abroad. In a…
  • puerto-vallarta-police-chase-bahia-de-banderasPuerto Vallarta police chase ends in deadly collision in Bahía de Banderas A Puerto Vallarta police chase along Highway 200 ended in a deadly collision in Bahía de Banderas, leaving two people dead. A high-speed chase that began in Puerto Vallarta, Jalisco, and ended in Bahía de Banderas, Nayarit, left at least two people dead and raised new questions about police engagement and road safety in the…
  • 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…
  • protestProtest graffiti and smashed windows mars anti-gentrification rally in Mexico City Residents and activists joined an anti-gentrification rally in Mexico Park, but the anti-gentrification rally Mexico Park turned destructive as masked youths defaced local shops and broke windows. A rally against gentrification held yesterday in Mexico City’s Parque México drew residents from Juárez, Roma, Condesa and Hipódromo alongside local activists. Organizers billed it as the city’s…
  • mexico city real estateGentrification in Mexico City is not the reason for the high cost of housing City housing shortage, not gentrification, drives prices skyward as planning lags behind demand and foreigner influence remains minimal. High real estate costs in Mexico City stem from a deep and persistent housing shortage—exacerbated by land constraints, tangled regulations and speculative investment—rather than by the presence of foreign residents. Despite headlines blaming “gentrification,” foreign-born residents make…
  • Body with signs of crocodile attack found in Ameca River, a leg was found last monthPurple Flag Warns Beachgoers after Crocodile at Los Muertos Beach Authorities raised a purple flag after a crocodile at Los Muertos Beach was spotted swimming near shore, advising visitors to avoid entering the water until safety checks ended. Local authorities recorded a crocodile swimming in the vicinity of Los Muertos Beach, one of Puerto Vallarta’s busiest tourist spots. Lifeguards spotted the reptile in shallow water…
  • José Luis Velázquez RodríguezSEAPAL Official Reported Missing in Puerto Vallarta Authorities in Puerto Vallarta have launched a search for José Luis Velázquez Rodríguez, SEAPAL's head of transparency, who has been missing since June 30. Family and officials are urging the public to report any information. Local authorities and civil protection units have launched a search operation for José Luis Velázquez Rodríguez, head of the Transparency…
  • puerto vallarta loses three blue flag beachesPuerto Vallarta retains four Blue Flag Beaches, down from eight Puerto Vallarta will enter the 2025–2026 season with four international Blue Flag distinctions in Puerto Vallarta, even after tourism-driven environmental damage cost it half of its previous honors. The Foundation for Environmental Education (FEE) in Mexico confirmed that three resort flags will be revalidated at Marriott Puerto Vallarta Resort & Spa, The Westin Resort &…
Scroll to Top