Mexico: Economic activity shrinks at fastest rate in over a decade in March
May 26, 2020
The monthly indicator for economic activity (IGAE) fell 1.3% in seasonally-adjusted, month-on-month terms in March, following February’s 0.6% slip and marking the worst decline since January 2009.
March’s downturn reflected in large part the impact from the containment measures put in place to combat Covid-19’s spread. Both industrial and services-sector activity contracted heavily, while the primary sector grew robustly—cushioning the overall slump.
On a year-on-year basis, economic activity shrank 2.3% in March, following the 0.6% dip logged in February. Lastly, the annual average variation economic activity slid to minus 0.8% from minus 0.5% in from the previous month.
Author: Javier Colato, Economist