SEOUL - THE fallout from the new H1N1 flu could cut 2.2 per cent from Mexico's gross domestic product for the second quarter, the World Bank said on Monday.

'Should recent levels of disruption in the commerce, restaurant, hotel and transportation businesses in the Mexico City region persist, they could reduce second-quarter GDP by as much as 2.2 per cent,' it said in The Global Development Finance 2009 report released in Seoul on the sidelines of an international conference.

Slammed by the US recession, Mexico's economy shrank 8.2 per cent in the first quarter compared to the year-ago quarter, its biggest economic contraction since 1995.

But some experts say Mexico's economy may have already hit bottom and have predicted growth in the second half of 2009.

Last week, the central bank cut rates for the sixth straight month but warned its easing cycle is nearly over. -- REUTERS