POZA RICA, Mexico - The remnants of hurricane Dean dumped heavy rain across central Mexico on Thursday, drenching mudslide-prone mountains as it pushed its way inland after slamming into the country's Gulf Coast as a Category 2 storm.

Neighbours banded together to clear fallen trees with axes and machetes from the streets of this storm-lashed city, while workers began reconnecting downed power lines. Dean killed 20 people in the Caribbean, but there were no reported deaths in Mexico.

"We have emerged in good shape because of our organization, because of our precautions,'' said Veracruz Gov. Fidel Herrera, while touring hurricane-battered coastal towns. "Now we enter the difficult phase of reconstruction and aid.''

The U.S. National Hurricane Center in Miami downgraded Dean to a tropical depression late Wednesday and predicted it would dissipate Thursday as it passed over Mexico's high mountains. But with up to half a metre of rain forecast, authorities worried there could still be floods or mudslides.

The mountain ranges near Mexico's coast are dotted with villages connected by precarious roads and susceptible to disaster. A rainstorm in 1999 caused floods that killed at least 350 people.

Dean slammed into Mexico for the second time in as many days Wednesday with top sustained winds of 160 kilometres an hour. Its centre hit the tourism and fishing town of Tecolutla. Hurricane-force winds lashed at a 95-kilometre stretch of the Mexican coast in Veracruz state.

As it pushed inland, Poza Rica, 50 kilometres from Tecolutla, became the area's command centre, and hundreds of people in shelters there.

Maria Patricia Perez, a 40-year-old merchant in Poza Rica, had the tin roof ripped completely off her house. "We were afraid it would knock down everything,'' she said.

Exhausted residents described helping one another battle Dean's rains and winds.

Shopkeeper Joel Cruz's house was left without electricity or telephone lines after a 30-year-old pine tree gave way, but it could have been worse.

Amid the howling winds, his neighbours helped him tie ropes around the tree and they were able to direct its fall away from his home. They also managed to move two cars away just before the giant tree came down.

"It was an adventure we survived,'' the 30-year-old Cruz said.

Late Wednesday, Poza Rica residents took stock of the damage -- and agreed it could have been much worse.

"A lot of homes were left without roofs,'' said Mariano Gutierrez, head of Civil Defence in Poza Rica. "Many trees fell on public streets and on houses. There are many fallen signs. But so far, thank God, we don't have anything serious.''

Dean hit the mainland as a Category 2 storm after regaining some of the force it unleashed on the Yucatan. Its first strike on the peninsula Tuesday as a Category 5 hurricane with 265 km/h winds was the third most intense Atlantic hurricane ever to make landfall.

Mexico had suspended offshore oil production and shut down its only nuclear power plant as tens of thousands headed for higher ground. The state oil company said there was no known damage to any of its production facilities on shore or in the Gulf of Mexico.

Producers of corn and sugar cane likely suffered heavy losses in Veracruz, a key agricultural state. Coffee plantations at higher elevations also were threatened by the heavy rains, industry officials said.

Although Dean swept over Yucatan as a rare Category 5 hurricane, which is capable of causing catastrophic damage, its top winds were relatively narrow and appeared to hit just one town: the cruise ship port of Majahual.

Nearly everyone in Majahual fled or was evacuated ahead of the storm. Dean demolished hundreds of houses, crumpled steel girders, splintered wooden structures and washed away parts of concrete dock that transformed what once was a sleepy fishing village into a top cruise ship destination.

A spokesman for Royal Caribbean Cruises Ltd., Michael Sheehan, said the company may have to find an alternative for a ship that has a port call at Costa Maya on Aug. 30.

Another top cruise ship operator, Carnival Corp., said early reports were that damage to Costa Maya was extensive and "the port will be out of commission for an indeterminate period.''

Information still was sparse about dozens of inland Mayan Indian communities where people living in stick huts rode out the storm.