OTHER NEWS - Feb. 17, 1996

Mexican Economy Shrank 6.9% in ‘95: After a year of galloping inflation and a collapse in the peso prompted by the December 1994 devaluation of the currency, production fell in virtually all sectors of the economy, Finance Ministry figures show. The biggest shrinkage came in the second quarter. The drop in output for the year was worse than what occurred during the Mexican debt crisis of 1982, when the economy shrank by 4.2%. The ministry said the fourth-quarter decline of 6.6% was less severe than those for the second and third quarters, suggesting that some degree of recovery may be taking place. Officials predict that gross domestic product growth of 3% for this year, but most economists consider that optimistic.