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Mexico’s Record Activity Plunge Signals Sluggish Recovery

  • IGAE economic indicator fell in May 22.7% vs. -20.3% forecast
  • Economists see 9.6% GDP contraction in 2020, worse since 1932
Updated on

Mexico’s economic activity plunged by a record in May, continuing a free-fall caused by a coronavirus outbreak that’s wreaking havoc on output.

Activity, as measured by a proxy known as IGAE, dropped 22.7% compared to a year ago, the national statistics agency reported on its website on Friday. That’s more than the median forecast for a 20.3% contraction in a Bloomberg survey. The monthly reading fell 2.6% from April, also worse than economists’ estimates.