Mexican Economy To Shrink 10.5% In 2020 Amid Coronavirus Outbreak - IMF

MEXICO CITY (Pakistan Point News / Sputnik - 25th June, 2020) Mexico's economy is expected to contract 10.5 percent this year as the coronavirus pandemic continues to weigh down on the global output, according to a forecast published Wednesday by the International Monetary Fund.

"In Latin America, where most countries are still struggling to contain infections, the two largest economies, Brazil and Mexico, are projected to contract by 9.1 and 10.5 percent, respectively, in 2020," the report read.

This will leave production in Mexico 3.9 percentage points lower than in the April projections published in the IMF's World Economic Outlook in April. In 2021, its output will bounce back to 3.3 percent.

Global growth is now expected to contract 4.9 percent in 2020, 1.9 percentage points below the April 2020 estimates, before rebounding to 5.4 percent next year. The IMF warned there was a higher-than-usual degree of uncertainty around its forecast due to differences in how countries implemented social distancing measures.