Mexico economy to shrink four percent

Analysts watching Mexico's economy forecast a 4.0 percent contraction in 2009 gross domestic product, sharper than expected previously, according to a monthly survey by the central bank released on Monday. Mexico's economy has tumbled into recession on a fall in demand for its exports. An outbreak of swine flu has also shut down the economy in recent days.
The poll was taken between April 21 and April 29, meaning some of the estimates collected were before Mexico announced a new strain of flu was killing people and spreading quickly through the country. Local and international analysts polled by the central bank in the previous monthly survey had seen a contraction of 3.3 percent in 2009.
Analysts in the poll released Monday predicted 2009 headline inflation at 4.38 percent, up from expectations of 4.25 percent in the previous poll. April headline inflation was seen rising 0.33 percent, with core prices up 0.38 percent during the month.