This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8061053.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Mexico hit hard by US recession Mexico hit hard by US recession
(about 3 hours later)
Mexico's economy shrank by 8.2% in the first three months of this year compared with a year earlier, as the global downturn hit demand for exports.Mexico's economy shrank by 8.2% in the first three months of this year compared with a year earlier, as the global downturn hit demand for exports.
The country's finance minister has warned that economic output could decline by 5.5% in 2009.The country's finance minister has warned that economic output could decline by 5.5% in 2009.
Mexico has been hit by the US recession and a drop in the amount of money sent home by migrant workers.Mexico has been hit by the US recession and a drop in the amount of money sent home by migrant workers.
Analysts predict the Mexican economy could suffer its biggest contraction this year since 1995.Analysts predict the Mexican economy could suffer its biggest contraction this year since 1995.
The latest figures do not reflect the impact of swine flu, which broke out after the quarter had ended.The latest figures do not reflect the impact of swine flu, which broke out after the quarter had ended.
The Mexican finance ministry has warned that the flu could cost the country's economy more than $2bn. The Mexican finance ministry has warned that the flu could cost the country's economy more than $2bn (£1.3bn).
Pessimistic
"We are looking at a lost year," said emerging markets strategist Win Thin at BBH."We are looking at a lost year," said emerging markets strategist Win Thin at BBH.
Capital Economics echoed this view saying the latest data "confirms our view that the economy is currently facing the worst recession in its modern history".
"This sharp fall leads us to believe that our initial GDP forecast of a 5% contraction this year was not pessimistic enough."
Capital Economics has now downgraded its forecast to an 8% contraction.
Mexico sends 80% of its exports to the US, so has been particularly exposed to the fall in consumer spending there.