MEXICO CITY - MEXICO on Monday re-opens most primary schools after a massive shutdown to contain an outbreak of swine flu, but six of 32 states were keeping schools closed due to further flu fears.

Mexico is at the epicentre of the A(H1N1) outbreak, with 48 dead and 1,578 confirmed cases, according to the government. Since the flu scare broke out in Mexico late last month, thousands of infections have been reported worldwide.

Following universities and high schools, freshly-scrubbed Mexican primary schools prepared to welcome back tens of thousands of pupils on Monday, but six states were keeping their school doors locked, as well as bars and restaurants in some cases, amid investigations into possible swine flu cases.

Guerrero state, home to the famous Acapulco beach resort, was also keeping bars and discos closed, while Jalisco, in western Mexico, announced the closure of many public places on Friday amid investigations into three suspect deaths.

The sprawling capital Mexico City, which has seen the most deaths, burst back into activity last week as many public places, including restaurants, cinemas and universities re-opened after a week-long closure.

The flu's impact - including the shutdowns and a hard knock to the key tourism industry - was expected to cost the economy around US$2.3 billion (S$3.35 billion), about 0.3 per cent of gross domestic product. The government is set to launch a fiscal stimulus package that includes a US$1.3 billion injection into the economy to try to limit the damage.

Mexico's ties have also been strained with several countries which have imposed bans on Mexican pork or cut travel links. Relations with China turned cold when scores of Mexicans were placed under quarantine there, after one Mexican in Hong Kong was confirmed to have been infected.

Fourteen Mexican nationals remained quarantined in China and one in Singapore due to fears created by the swine flu epidemic, the Mexican Foreign Ministry said Sunday. Mexico had advised its citizens not to travel to China.

Earlier Sunday, it also said it would not attend a global food industry event that will take place in Shanghai later this month because of China's 'unacceptable' policies in the wake of the swine flu crisis.

Meanwhile a first case of swine flu was confirmed on mainland China Monday in a patient who had recently returned from the United States. -- AFP