Mexico in decline – IMF

International Monetary Fund estimates that Mexico’s GDP will fall by 10.5% According to its global macroeconomic outlook report, projections for the Latin American and Caribbean region, including Mexico, predict a 9.4 percent contraction this year and a 3.7 percent recovery from next year.

MEXICO CITY (Europa Press) – The International Monetary Fund (IMF) has updated its forecast of Mexico’s gross domestic product (GDP) for this year. Mexico received one of the strongest adjustments, going from -6.6 to -10.5 percent. However, it estimated recovery of 3.3 percent for 2021. According to the World Bank, it will be the worst global decline since World War II.

According to López Obrador, “The IMF’s forecast is very pessimistic. I’m an optimist. I maintain that we are going to recover soon,” he said. AMLO did not make clear estimates for the economic downturn. However, he recalled that a 5 percent drop was expected in the first quarter of the year, which did not happen that way. He estimated that the April-June quarter would be the most complicated for the national economy. However, he argued with the data on job losses.

“In April, 555,000 jobs were lost. Already in May, it was 340,000. We have already reached the bottom. So far in June, until yesterday, 85,000 jobs have been lost”. He stressed that there are days in the month when there have been increases in the labor register. “I estimate, by the end of June, 120,130,000 (jobs lost),” and in July, “there will be no more job losses, that is my forecast,” said the president.

According to its global macroeconomic outlook report, the IMF again lowered its forecast for the GDP of the Latin American and Caribbean region, including Mexico, to a contraction of 9.4 percent this year and recovery of 3.7 percent from next year.