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%.
Author: Javier Colato, Economist