Mexico Economic Activity May 2020

Mexico

Mexico: Decline in economic activity softens markedly in May

July 24, 2020

The monthly indicator for economic activity (IGAE) decreased 2.6% month-on-month in seasonally-adjusted terms in May, which followed April's 17.3% record-breaking collapse.

The smaller drop was largely driven by a weaker contraction of the services sector. In addition, industrial sector output also fell at a softer pace.

On an annual basis, economic activity plunged 22.7% in May (April: -19.8% yoy), the worst result on record. Accordingly, the trend pointed down, with the annual average variation of economic activity coming in at minus 4.2% in May, down from April's minus 2.3%.

Analysts participating in the LatinFocus Consensus Forecast expect GDP to contract of 8.5% in 2020, which is down 1 percentage points from last month’s forecast. For 2021, GDP growth is projected at 3.3%.


Author:, Economist

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Mexico Economic Activity May 20 20 0

Note: Month-on-month (s.a.) and year-on-year changes of economic activity indicator in %.
Source: Mexico’s National Statistical Institute (INEGI) and FocusEconomics calculations.


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