Mexican Growth Revised Deeper Into Contraction Amid Covid-19 Outbreak

• Fitch has revised its 2020 real GDP growth forecast for Mexico to –2.8% y-o-y, from -0.2% previously, the worst annual growth performance in the country since 2009.
• This revision is driven by the view that the global economy will tip into recession, and the country’s relative lack of preparations for a domestic outbreak of Covid-19 (coronavirus).
• While it is expected that the country’s economy will begin to recover in H220, downside risks to this timeline are significant.

(Source: Fitch)