This is the deepest setback in the history of the indicator since its registration began in 1993.
In the second quarter of 2020, the Timely Estimate of Gross Domestic Product (GDP) decreased 17.3% compared to the previous quarter, and had a real reduction of 18.9% in its annual reference, reported the National Institute of Statistics and Geography (Inegi) .
This is the deepest decline in the history of the indicator since its registration began in 1993. It is also the fifth consecutive quarter with a decline in this indicator .
“GDP, the strong quarterly contraction of Gross Domestic Product estimated in 2020-Q2 (-17.3% QoQ) is the largest in the history of this macroeconomic indicator and almost doubles the declines in 1995-Q2 (-9.1%) and 2009- Q2 (-8.9%) ”, wrote the president of INEGI, Julio Santaella, on his Twitter account.
Analysts anticipated a slightly larger drop in the period, at 17.7%, according to a Reuters poll.
During the first semester of 2020, the opportune GDP decreased 10.5% compared to the same period in 2019.
During April and May, a large part of the country’s productive activities were suspended due to the restrictions imposed by the government to face the pandemic , which until now has left more than 390,500 infections and 43,680 deaths throughout the territory.
Secondary Activities of GDP decreased 23.6%, Tertiary Activities 14.5% and Primary Activities 2.5% in the second quarter of 2020 in relation to the previous quarter.
Mexico began slowly to emerge in June from two months of restrictions on non-essential economic activity imposed to slow the advance of the virus, which, however, it has been unable to contain. The Latin American country in fourth place worldwide with the highest number of deaths related to Covid-19.
Mexican economy, up to 2 years to recover
The deputy governor of Banco de México, Gerardo Esquivel estimated yesterday in an article that activity would fall between 8% and 12% in the third quarter and between 4% and 8% in the last section of 2020.
“It would not be until 2022 when we would expect to return to the production levels we had before the start of the pandemic,” said Esquivel.