Economic activity in April records biggest drop in seven years

Women make amaranth bars at a plant in Mexico City. (EFE)
Women make amaranth bars at a plant in Mexico City. (EFE)

Sentido Común

The global indicator of economic activity collapsed during April to record its worst monthly performance in over seven years by a contraction in activities industrial and services, a sign of a possible cooling of the second largest economy in Latin America.

The indicator was its second straight setback, down 1.2 percent from March, after it fell 0.2 percent in the third month against the second, said National Institute of Statistics and geography (INEGI).

The decline is the worst April since January 2009 when the global indicator of economic activity fell 2.2 percent by the global financial and economic crisis that hit Mexico, and that gave rise to the period now known as the Great Recession.

“As a result, economic activity reached an annualized growth of zero in the period from February to April, well below the advance of 2.8 percent in the” first quarter of this year, wrote Alexander Cervantes, senior economist at the bank Banorte Ixe in a report.

The performance of economic activity in the fourth month of the year will likely cause the country’s economic growth suffer a slowdown in the April-June period.

http://www.sentidocomun.com.mx/articulo.phtml?id=31163

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