21 May 2009

Economy shrinks 8.2% in Mexico

9:09 am on 21 May 2009

The economy of Mexico shrunk 8.2% in the first quarter of 2009.

The recession in the United States has hit exports hard, as well as diminished the flow of money sent home by emigrants.

The economy is expected to record its worst performance since 1995, when an economic crisis and devaluation of the peso caused gross domestic product to sink 6.9%.

The latest GDP figures from the national statistics institute on Wednesday, do not take into account the impact of A(H1N1) flu, which killed 74 people and led to a virtual shutdown of parts of the country.

The finance ministry has estimated the flu's impact will cost the economy around $US2.3 billion - around 0.3% of GDP.