Demand shocks drive Mexican economic activity during COVID-19 peak, study finds.
The COVID-19 pandemic caused both supply and demand shocks in Mexico. During the peak contraction in 2020, demand shocks were the main cause of economic fluctuations in most sectors. Domestic demand had the biggest impact on GDP changes, with external factors also playing a role. Since 2021, external supply shocks have negatively affected industrial production, while domestic and external demand have been positive influences.