Mexico officially in recession

It’s official; much like its northern neighbor, Mexico’s economic downturn has officially become a recession:

Mexico's economy is in recession and could contract by 4.1 percent this year because of a decline in exports to the United States and a national shutdown to curb a swine flu outbreak, the finance secretary said Thursday.

"It is a fact that we are in recession," Finance Secretary Agustin Carstens told foreign correspondents - marking the first time the government has acknowledged Mexico is already in a recession…

Carstens said gross domestic product could contract 4.1 percent this year, an estimate that takes into account the cost of the swine flu epidemic that forced a five-day closure of many government services and businesses. All businesses were allowed to reopen Thursday.

Carstens added that Mexico’s economic woes may continue for a while since the country may not see economic growth until early next year.

Despite the negative news, the Mexican stock market continued its bullish run this week with the IPC index reaching its highest point since October.

Image- New York Times (The swine flu outbreak forced restaurants in Mexico City this month to either allow take-out service only or close altogether).
Online Sources- Reuters, Bloomberg, forbes.com