MEXICO CITY, Aug. 11 (Xinhua) -- Mexican Secretary of Treasury and Public Credit Agustin Carstens said Tuesday that Mexico was facing the worst financial shock in 30 years, a result of sharp drops in revenues.

    "Seen historically, this is the biggest financial shock that Mexico has faced in the last 30 years," Carstens said during a public audience in the Senate.

    He added that the public finances faced two shocks: short-term lower economic activity which could recover in time, and a drop in oil business, which could be long-term and cost a lot.

    These two factors caused a deficit of 480 billion pesos (37.795 billion U.S. dollars). Almost 270 billion pesos were to be attributed to a drop in economic activities, while another 211 billion were from a drop in oil prices and production. This deficit equals 4 percent of the annual GDP.

    The crisis would have two consequences for the Mexican economy in the next three years: economic recovery would be slow, and there would be less financial resources available, Carstens said.

Special Report:  Global Financial Crisis