Economics
Mexico Risks Deepest Crash Since 1932, Central Bank Warns
- Bank’s worst-case is an 8.8% drop in output this year
- Oil price crash aggravated the damage done by the pandemic
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Mexico faces what could be its worst contraction in almost a century this year as the crash in oil prices aggravates the slump caused by the coronavirus pandemic, the central bank said.
Gross domestic product may contract in 2020 as much as 8.8% in the central bank’s most negative scenario, it said in its quarterly inflation report published Wednesday. Even in the best-case scenario the economy will shrink 4.6%, which would be its worst performance in more than a decade, Banxico, as the bank is known, said in the report.