The Economy

Mexican Economy Contracts 6.5% in 2009

Feb. 22, 2010

In 2010 the economy is expected to grow 3%.

Mexico's economy, the second largest in Latin America, shrunk 6.5% in 2009, the national statistics agency said on Feb. 22.

Gross Domestic Product fell 2.3% in the fourth quarter of 2009 compared with the same period the previous year, according to INEGI, as the country struggled to emerge from its worst recession in decades.

The figures were slightly lower than predicted by officials and economists.

Mexico, which depends on the United States for 80% of its exports, saw a record 10.3% drop in GDP in the second quarter of 2009 as the outbreak of swine flu compounded economic problems and froze the key tourist industry.

Officials have predicted the economy will rebound to 3% growth in 2010.

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