Saturday, September 13, 2025

Economic activity fell 21.6% in May to lowest level ever recorded

The coronavirus pandemic and associated restrictions ravaged Mexico’s economy in May, new data shows.

The national statistics institute Inegi reported Friday that economic activity declined 21.6% in May compared to the same month of 2019. The contraction was the worst year-over-year decline since comparable economic records were first kept in 1993.

May was the second full month in which nationwide coronavirus restrictions were in force. The economic slump in the fifth month of the year followed a 19.67% annual contraction in April.

Activity in the tertiary sector of the economy, which includes services and retail, declined 3.2% in May compared to the previous month, Inegi said. The result will have a significant impact on Mexico’s overall economic performance this year as the tertiary sector contributes to about 65% of Mexico’s GDP and employs more than half of all Mexican workers.

Secondary activities, including manufacturing, mining and construction, fell 1.8%, Inegi said.

The only bright spot was that the primary sector, which includes farming and fishing, grew 1.6%.

Mexico’s economy is forecast to suffer a deep recession in 2020 as the coronavirus pandemic continues to exact a heavy toll on the country.

The International Monetary Fund is predicting that GDP will shrink 10.5% this year, more than any other Latin American country.

The coronavirus-induced crisis is predicted to push millions of Mexicans into poverty, and human rights activists have warned that the pandemic has already deepened inequality.

Investment bank Goldman Sachs said in a note to clients that the federal government’s “underwhelming” fiscal response to the coronavirus crisis does not bode well for a strong economic recovery in the short term.

“The weak fiscal policy response to the pandemic … is likely to lead to a deeper contraction and a shallower recovery.”

Source: El Economista (sp) 

Have something to say? Paid Subscribers get all access to make & read comments.
A soldier records the passage of Armed Forces helicopters during rehearsals for the Military Air Parade marking the 215th anniversary of the start of the Mexican War of Independence

Mexico’s week in review: Market confidence, China tariff hikes and military scandal

0
Other headlines included a move by Peru to declare Mexico's president a persona non grata, a one-year high for the peso and fatal roadway accidents that left over 100 people wounded.
News quiz

The MND News Quiz of the Week: September 13th

0
Trash, tariffs and tourism: Have you been following the news this week?
presdent sheinbaum in Sept 2025

Sheinbaum on the defense after China charges Mexico with enacting tariffs under US coercion

31
While rejecting any "appeasement ... toward unilateral bullying” (a clear reference to Trump), the president indicated a willingness to negotiate.
BETA Version - Powered by Perplexity