Mexican economy to grow up to 3% in 2024, same pace as 2023

Mexico’s economy will grow up to 3.0 percent in 2024, the same pace it will observe in 2023, supported by its domestic demand, as the government’s Ministry of Finance estimated on Friday.

In the 2024 Economic Pre-Criteria, the agency indicated that high employment levels, public investment in strategic infrastructure, and the relocation effect of companies on private investment would also influence growth.

“In this sense, the economy is anticipated to grow by 3.0 percent in 2023 and 2024, with ranges from 2.2 to 3.0 percent for the current year and from 1.6 to 3.0 percent for 2024,” it detailed.

The Treasury said that Mexico’s sectors and regions most closely linked to the United States would continue to grow, despite the uncertainty prevailing in the neighboring country’s economic activity.

In addition, the relocation carried out by some companies to Mexico will contribute up to 1.2 additional percentage points to the Gross Domestic Product (GDP) on a permanent basis.

“Private investment will be a complementary source of Mexico’s economic growth, which will favor higher export volumes and quality jobs with competitive wages,” he said.

Mexico’s public debt will stand at 49.9 percent of GDP in 2023 and will remain at that level in 2024, according to the document submitted to Congress.

Treasury said that these figures guarantee an orderly transition for the next administration once the term of office of current President Andrés Manuel López Obrador ends in 2024.

“2024 marks the end of a stage of transformation in Mexico’s economic policy, focused on eradicating corruption and achieving equality, equity, and well-being for all Mexicans,” the agency said.

“Mexico’s new economic policy is a reality, and its foundations will be key to long-term development,” it said.

The delivery of the Pre-Criteria to Congress marks the beginning of the dialogue with legislators on the budget process for next year’s fiscal year.

Mexico’s economy, the second largest in Latin America after Brazil, grew 3.1 percent in 2022, down from the 4.7 percent expansion the previous year.