Historic drop in Mexican economy during 2020

GDP during the second quarter of 2020 GDP declined 17.1 percent in real terms; exceeds the falls of 2009 and 2005

MEXICO CITY (Times Media Mexico) – According to the results of the Gross Domestic Product (GDP) made by the National Institute of Statistics and Geography (Inegi), the GDP had a real decline, to annual comparison, of 18.7 percent during the second quarter of the year (period April-June 2020), a historical figure.

GDP figures for the first quarter of 2020 Chart of Inegi

Meanwhile, the Quarterly Gross Domestic Product decreased by 17.1 percent in real terms in that quarter of the year compared to the previous quarter, with figures adjusted for seasonality.

This means that during the first six months of 2020, GDP at constant prices registered a variation of (-)10.4 percent, compared to the same half of 2019.

In the historical context, the Gross Domestic Product’s annual contraction announced today by Inegi reveals that, during the confinement of 2020, it surpassed the previous falls of 2009-T2 (-7.7%) and 1995-T2 (-8.6%).

Moreover, in the GDP contraction observed during the confinement, it is necessary to go back ten years to observe the product’s same level.

GDP to the second quarter of 2020, Seasonally adjusted and trend series. Data from INEGI.

This index’s decrease is since Mexico suffered the most substantial health measures in the quarter due to the COVID-19 pandemic.

By components, the GDP of primary activities fell (-)2 percent, secondary activities (-)23.4 percent, and tertiary activities (-)15.1 percent in the April-June quarter of this year compared to the previous quarter.

In its annual comparison, secondary GDP fell by less (-)25.7 percent, tertiary GDP by less (-)16.2 percent, and primary GDP by less (-)0.2 percent in the same period.