| The Mexican economy went off a cliff in the second three months of 2009, with the gross domestic product dropping 10.3 percent from the same period last year, according to government figures. Analysts say the main cause of Mexico's nosedive is that the nation's economy is tied strongly to that of the United States, which is mired in the deepest economic downturn since the 1930s. Other factors dragging the Mexican economy down include a tourism decline caused by the H1N1 flu outbreak, declining oil and tax revenues, and fewer Mexicans abroad sending money back home. Oil revenues, long Mexico's main source of money, are being hurt by lower global prices and declining production. Remittances from Mexicans working abroad, most of them in the United States, also have fallen victim to the economic downturn. Fewer jobs in the United States means fewer opportunities for Mexicans to find work and send money home. Remittances rank after oil in terms of revenue for the country. That revenue fell from 26 billion dollars in 2007 to 25 billion dollars in 2008, Mexico's Central Bank said, and is expected to decrease even more this year. Tourism, Mexico's third-largest source of revenue, has declined steadily since an outbreak of the H1N1 flu was first discovered in Mexico in April. |
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