Mexico’s economy expected to contract 7.6% this year

Mexico’s economy is seen shrinking 7.6% in 2020 as “the Mexican policy response to the coronavirus is among the weakest anywhere in the world” and top trade partner the United States is also seen contracting, Swiss bank UBS said in a note to clients on Monday April 13th.

Just a couple of week ago, the financial company JP Morgan estimated that this year the Mexican economy will fall 7%, accentuating its contraction in the second quarter.

Previously, the firm forecast that the economy would contract 1.8 percent; however, the bank pointed out that one of the most worrying issues is that Mexico is in an early phase two of contagion with coronavirus, and that: “an eventual increase in the number of cases would probably lead to more strict measures of social distancing, that until now have not been enacted, “said the report.

Source: Notimex