Mexico’s economy fared better than expected during the first quarter of 2020, a recent report shows.
Mexico’s economy shrank by 1.2% during the January-March period, according to the statistics agency INEG, Reuters reported.
Growth in farming and forestry growth helped offset declines in manufacturing and services, contributing to a better result than the estimated 1.6% decrease INEGI made on April 30.
INEGI revised its previous figures to show a 0.6% decline in the economy in the last quarter of 2019 and a 0.2% decrease in the second and third quarters of 2019, Reuters said. The economy grew by 0.2% in the first quarter of 2019. Previously the agency said the economy shrank by a tenth of a percentage point in each quarter of 2019.
Mexico’s COVID-19 lockdown orders were not issued until late March, so the effect of the coronavirus on the country’s economy should be reflected heavily in the second quarter. Some industries were completely shuttered due to the pandemic. Analysts estimate the nation’s economy will shrink by 10% or more in 2020.
INEGI’s first-quarter data showed that farming, forestry, fishing and mining grew by 1.7% from the previous quarter. Secondary activities, including manufacturing, shrank by 1.2% while the service sector shrank by 0.9%.
Overall the economy shrank 1.4% compared to the same time a year earlier, according to Reuters.
