Mexico economy dropped 18.9% in 2nd quarter

MEXICO CITY (AP) — Mexico’s economic activity plummeted 18.9% in the second quarter compared to the same period last year as the economic shutdown caused by the COVID-19 pandemic drove the country deeper into a recession, according to preliminary government data released Thursday.

Mexico’s statistical agency said that the second quarter running from April through June was 17.3% lower than the previous quarter in its seasonally adjusted estimates for gross domestic product.

In June, the National Institute of Statistics and Geography announced that industrial activity fell 25% in April compared to March, the worst monthly decline since it began tracking the monthly data in 1993.

President Andrés Manuel López Obrador said recently that the economy hit bottom in late April.

The country has lost more than 1 million jobs in its formal sector. More than half of Mexicans work in the informal economy, which is believed to have shed many more jobs.

The Mexican economy was already in a recession before the country recorded its first confirmed case of COVID-19 Feb. 28. The economy is forecast to contract at least 9% in 2020.

The government has reported more than 408,000 confirmed infections and more than 45,000 deaths.

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