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Mexico cuts growth forecast as economy contracts

Wednesday, August 21, 2013

Mexico's economy contracted for the first time in four years in the second quarter as lower government spending, sluggish consumption and weak demand for exports hammered industry and services.

The drop prompted the government to cut its growth outlook for the year to 1.8 percent, from a previous 3.1 percent.

The economy shrank by 0.7 percent in the second quarter compared with the first quarter, the national statistics agency said.

Source: Reuters