Thursday, December 12, 2024
spot_img

Mexican economy faces worst setback since the 1930s

Date:

Share post:

spot_img
spot_img

Mexico City, Jan 30 (IANS) Mexico’s economy contracted 8.3 per cent in 2020 year-on-year, marking its worst setback since the 1930s largely due to the coronavirus pandemic and the related lockdowns, according to preliminary estimates published by the National Institute of Statistics and Geography (INEGI).

In the fourth quarter of 2020, Mexico’s gross domestic product (GDP) fell 4.5 per cent year-on-year, a more moderate contraction than the 18.7 per cent decline in the second quarter of last year and the 8.6 per cent decline in the third quarter, when the pandemic impacted productive activities, according to the INEGI report published on Friday.

In 2019, Mexico’s GDP fell 0.1 per cent, accumulating two years of contraction, reports Xinhua news agency.

Mexican industrial activity in 2020 plummeted by 10 per cent annually, while the services sector saw a 7.7 per cent drop. The two sectors contribute the most to the GDP.

The agricultural sector, which makes a minimal contribution to GDP, grew by 2 per cent last year, according to INEGI’s preliminary estimate.

Seasonally adjusted figures show Mexico’s GDP dropped 8.5 per cent in 2020, but expanded 3.1 per cent in the fourth quarter of last year compared to the previous quarter.

Productive activity practically came to a standstill in the first half of 2020, after the first Covid-19 case was detected in February.

Mexico relies heavily on the economy in the US, its northern neighbour and main trading partner, whose economy contracted 3.5 per cent in 2020, the biggest annual decline since 1946.

With 155,145 Covid-19 fatalities, Mexico currently accounts for the third highest death toll in the world after the US and Brazil.

The country has registered a total of 1,825,519 confirmed cases.

spot_img
spot_img

Related articles

Turkey fines Meta over child privacy breach

Ankara, Dec 11: Turkey's data protection authority, the Personal Data Protection Authority (KVKK), has fined Meta, the parent...

India’s renewable energy capacity logs 14.2 pc growth at 213.7 GW

New Delhi, Dec 11: India’s total non-fossil fuel installed capacity reached 213.70 GW in November, marking an impressive...

India poised to become leading maritime player: PM Modi

New Delhi, Dec 11: Prime Minister Narendra Modi on Wednesday highlighted that with a strategic location in the...

Syrian militants lift curfew in Damascus, urge residents to return to work

Damascus, Dec 11:  Syria's Military Operations Administration announced Wednesday that it has lifted the curfew previously imposed on...