Page last updated at 21:40 GMT, Thursday, 20 August 2009 22:40 UK

Mexico suffers amid US recession

People wearing masks as they visit a Mexican hospital
The swine flu outbreak has hit Mexico's tourist industry hard

Mexico's economy shrank by 10.3% between April and June as the global downturn hit demand for exports and swine flu drove tourist numbers down.

The decline was blamed on slides in the industrial and services sectors, which are closely tied to the US and have felt the force of the economic crisis.

The US recession has also led to a sharp drop in the amount of money sent home by migrant workers.

Meanwhile, the outbreak of swine flu in April and May severely dented tourism.

Mexico, which is Latin America's second largest economy, went into recession in the first quarter of 2009, when it saw GDP drop by 8.2% compared with the same period in 2009.

The country sends about 80% of its exports to the US, so has been particularly exposed to the fall in consumer spending there.

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