| | |  Business News | August 2009 
Mexico's Economic Slump has Hit Bottom - Govt
 Noel Randewich - Reuters
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August 25, 2009
Mexico City - Mexico's economy, slammed by a drop in U.S. demand, has sunk to its low point and recent data shows signs of growth, the government said this week.
Mexico's economic output was down 1.1 percent in the second quarter compared to the first quarter, a much smaller decline than in the January-March period.
"The crisis has touched bottom in Mexico. The recovery has begun," the finance ministry said in a press release.
With a downturn in the United States choking demand for its manufactured goods, Mexico's economy is expected to shrink about 7 percent overall in 2009 after slumping in the first half and then recovering slightly.
"The most recent information about employment and aggregate demand - looked at in monthly terms - shows a recovery," the ministry said.
In the United States, the battered housing sector is showing signs of bottoming out, and manufacturing surveys have been ticking steadily higher.
Some 80 percent of Mexican exports, including cars and televisions, go to the United States.
(Editing by Diane Craft) |
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