During the second quarter of 2020, Mexico registered a sharp fall in its GDP year-over-year growth rate, which stood at -18.68%. The Mexican economy has registered five consecutive quarters of negative growth rates, although the contraction has been much more severe in this second quarter of 2020 due to the pandemic. Regarding prices, inflation stood at 2.77% in 2Q20. Concerning the labor market, the unemployment rate increased with respect to the previous quarter, up to 4.85%. The Mexican peso depreciated against the dollar, recording an average exchange rate of 23.33 MXN/USD during the second quarter of the year.
Macroeconomic outlook report: Mexico 2Q20
- Mexico's GDP registered a year-over-year growth rate of -18.68%, which meant a fall of 16.55 p.p. with respect to the previous quarter. This behavior was largely due to the supply and demand shocks caused by the pandemic.
- As for the industrial activity index, during the second quarter of 2020 it registered a decrease in its year-over-year growth of 22.66 p.p. with respect to the previous quarter, down to a rate of -25.84%.
- In the labor market, the unemployment rate increased by 1.39 p.p. compared to 1Q20, up to 4.85% in 2Q20.
- The Mexican peso depreciated against the U.S. dollar during 2Q20, registering an average exchange rate of 23.33 pesos per dollar, 3.32 pesos per dollar more than in 1Q20, which meant a depreciation of 16.59%.
- Inflation stood at a rate of 2.77% in 2Q20, after decelerating by 0.63 p.p. when compared to the previous quarter.
For more information click here to access the executive document in pdf (only available in Spanish).