Mexico City - The Mexican economy contracted 8.2 per cent in the first quarter, Mexican Finance Minister Agustin Carstens said Wednesday.

Carstens said that government forecasts for gross domestic product (GDP) for 2009 were revised downward, to a drop of 5.5 per cent. The substantial contraction comes amid a severe global recession, which has particularly hit the United States, which buys more than 80 per cent of Mexican exports.

The Mexican economy - the world's 13th largest in 2008, according to the International Monetary Fund (IMF) - has been further damaged starting in April by the outbreak of the new A(H1N1) influenza virus, which has claimed at least 74 lives in Mexico.

In late April, Mexican authorities banned most public commerce and gatherings, particularly around the sprawling metropolis of Mexico City, in response to the public health crisis. The flu-related economic impacts, especially the tourism and entertainment sectors, are expected to fuel a further contraction in the second quarter. (dpa)