Mexican economy plunges deeper, outlook brightens

Mexico’s economy plunged yet again, marking another month of decline as it dropped more than 2% in March. While there was a contraction, analysts were still optimistic for a rebound in the coming months as the coronavirus crisis subsides and the United States’ relief package kicks in.

The economy recorded a 2.1% contraction in March from a year ago, preliminary data from national statistics agency INEGI showed on Monday. The latest figure underscored the country’s worsening economic woes, tallying another weak year after it dropped 8.5% in 2020.

While Latin America’s second-largest economy declined, it is predicted to stage a modest recovery. The United States’ massive stimulus package would be one of the factors that would fuel the economy towards growth.