US Trading Partners See Huge GDP Falls

Mexico contracts 21.5% as American demand dries up

By Jason Farago, Newser Staff

Posted May 21, 2009 6:16 AM CDT

(Newser) – Yesterday Mexico became the latest country to disclose a sharp economic contraction as a result of the slowdown in US consumption of imported goods. Mexican GDP fell at an annualized rate of 21.5% in the first quarter, following Germany, down 14.4%, and Japan, 15.2%—its worst performance since 1955. As the Wall Street Journal reports, declining US demand is taking severe effects on exporting nations.

The Fed is anticipating only a "gradual recovery" for the US beginning this summer, but unemployment is expected to remain above 9% through 2010. That's troubling news for American trading partners, particularly NAFTA member Mexico, where auto production has tumbled 41% year-over-year. The depth of the global recession will only intensify calls to restart the Doha Round of trade talks, which have been stalled since last summer.

Participants shout slogans during a May Day rally organized by Japan's National Confederation of Trade Unions in Yoyogi Park in Tokyo, Japan, Friday, May 1, 2009. (AP Photo/Katsumi Kasahara)

Visitors look at Honda Motor Co.'s Insight Hybrid displayed at an ecology fair in Tokyo, Japan. (AP Photo/Katsumi Kasahara)

The Japanese economy contracted at an annual rate of 15.2% in the first quarter. (©RichieC)

A donkey-zebra tourist photo stand sits at Revolucion street in Tijuana, Mexico, Friday, May 15, 2009. (AP Photo/Guillermo Arias)

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US Trading Partners See Huge GDP Falls

Mexico contracts 21.5% as American demand dries up

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Fall-Back Job for Japanese Women: Flirting

Recession sends women into night clubs to sexily serve drinks

Only Trade Can Rescue World Economy: Brown

'A banking crisis has become a trade crisis,' writes British PM

Japan Sinks Into Recession

Economic downturn could last a year

Oil Sinks Below $70 as Economy Tanks

Price oil halves in 3 months as demand takes a dive

Pass the Bailout, Or Else We'll Become Japan

Its decade of decline shows the risks of inaction: Kristof

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US Trading Partners See Huge GDP Falls

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OTHER STORIES ON OUR RADAR

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MOST POPULAR STORIES

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Fall-Back Job for Japanese Women: Flirting

Recession sends women into night clubs to sexily serve drinks

Only Trade Can Rescue World Economy: Brown

'A banking crisis has become a trade crisis,' writes British PM

Japan Sinks Into Recession

Economic downturn could last a year

Oil Sinks Below $70 as Economy Tanks

Price oil halves in 3 months as demand takes a dive

Pass the Bailout, Or Else We'll Become Japan

Its decade of decline shows the risks of inaction: Kristof

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Newser By Users

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