Mexico economy down by 6.8 percent in 2009

Although Mexico’s economy has improved during the last two quarters of 2009, the major downturn that happened during the second quarter was enough to affect the yearlong data significantly.

Mexico’s growth domestic product for the whole year of 2009 went down by an astonishing 6.8 percent, the worst it ever did in the last 30 years, according to the country’s Treasury Department on Friday.

In 1995, Mexico had also witnessed a slump in its economy with 6.2 percent decrease in its GDP. This was during its debt crisis, but 2009 has been a worse year for the largest Latin American nation.

The economy’s growth expanded by 1.2 percent during the last quarter of 2009 and 2.9 percent during the third quarter, but these data are still lower than the figures during the same period of the previous year.

However, the statistics still represented an improving economy after a difficult second quarter with a decline of 10.3 percent. Analysts have predicted GDP for the whole 2009 to bet 7 percent.

The Treasury Department is expecting a 3 percent growth in Mexico’s GDP 2010, but it is also hoping that actual data by the end of the year will surpass this prediction due to an evolving economy.

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