• FORECAST: The Mexican economy is expected to face in 2020 its worst performance since 1932 with the International Monetary Fund (IMF) forecasting today a 10.5% contraction in Gross Domestic Product (GDP). The new figure is substantially worst than the 6.6% drop predicted by the IMF in April.
• PANDEMIC: Amidst the coronavirus pandemic that has sent all the world’s regions into negative growth, the IMF warned that most countries in Latin America -including Mexico- are still struggling to contain infections, something that directly factors into economic performance this year.
• LOCKDOWN: “In Latin America, where most countries are still struggling to contain infections, the two largest economies, Brazil and Mexico, are projected to contract by 9.1 and 10.5 percent, respectively”, the IMF said today. Most economists agree on a sharp decline for Mexico in 2020.
• HISTORY: If the IMF’s forecast materializes, Mexico will face its worst year since 1932 when during the Great Depression the economy contracted by 16.2%. More recently, the Mexico’s GDP fell by 6.6% in 2009 amid the global financial crisis and by 6.2% during the Tequila Crisis of 1995.
