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Bloomberg
Mexico’s economy contracted in the second quarter for the first time in three years as growth in the services industry slowed and exports fell.
Gross domestic product declined 0.3 percent from the first three months, according to preliminary figures released by the national statistics institute Friday. The median forecast of 13 economists surveyed by Bloomberg was for a contraction of 0.1 percent. From the previous year, GDP climbed 2.4 percent, in line with estimates. The institute will release final growth figures Aug. 22.
Mexico has been hit by a slump in exports to the U.S., as well as falling oil prices and output that forced the government to cut spending. Adding to the problem is a slower expansion in domestic demand that had been the main source of growth for previous quarters in Latin America’s second-largest economy.