MEXICO CITY – Mexico drastically cut its 2013 growth forecast Tuesday after the economy shrank between April and June for the first quarterly contraction since the 2009 global financial crisis.
The Finance Ministry said in a statement that the gross domestic product was now expected to grow by 1.8 percent from a previous forecast of 3.1 percent. The government had already cut its prediction from 3.5 percent earlier this year.
The ministry said the Mexican economy was affected by a slowdown of external demand that began in 2012, as well as lackluster global economic activity.
The Finance Ministry cited official data showing that the economy grew by a weaker-than-expected 1.5 percent in the second quarter compared to the same period last year, and by just 1.0 percent in the first half of 2013.