Mexico Q2 Growth Seen Deteriorating

Market consensus indicates that Mexico’s GDP will have contracted 10.8% in Q2 2009, after falling 21.5% in the first quarter because of drop in industrial activity. The industrial sector is expected to post an 11.6% drop in Q2, a larger drop than the 9.9% contraction posted in Q1. The outlook for the retail sector is not good either, says Citi, which forecasts a 7.2% contraction year-over-year. Market consensus points to a 7.5% drop in retail sales for 2009.