‘Mexico’s pandemic-hit economy could shrink nearly 9 % in 2020’

Mexico City, Nov 26 : Mexico’s economy could contract 8.9 per cent in 2020, amid a slow recovery in global productivity affected by the Covid-19 pandemic, the Bank of Mexico (Banxico) said in a report.

Banxico’s economic growth forecast shows gross domestic product (GDP) will expand by 3.3 per cent in 2021 and by a more moderate 2.6 per cent in 2022.

“There remains a high degree of uncertainty about the future evolution of (economic) activity, both nationally and globally,” the Governor of Banxico, Alejandro Diaz de Leon, said in a videoconference presenting the report.

“The baseline scenario assumes a gradual recovery, at a moderate pace, throughout the forecast timeframe, converging to inertial growth by 2022,” Diaz said.

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Diaz added the economic projections are skewed downwards, due to the presence of several risks, such as the possibility of stricter lockdowns due to a resurgence in Covid-19.

Disclaimer: This story is auto-generated from IANS service.

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