Mexico’s industrial sector grew by 3.5% YoY in 2023, driven by the construction sector, according to the stats agency Inegi.
Friday’s report highlighted that construction alone jumped by 15.6% annually. The energy sector, including electricity, water, and natural gas distribution, also saw a 3.7% increase.
The manufacturing sector, closely tied to the U.S. market, experienced a slight growth of 0.9% year over year.
Despite this modest rise, the BX+ Financial Group predicts a potential slowdown. They point to expected dips in investment and domestic spending as causes.
This forecast aligns with signs of a deceleration in the U.S. manufacturing sector, which could dampen Mexican exports.
The slowdown in exports is critical as it might extend through the coming months, affecting overall industrial momentum.
Furthermore, BX+ warns of a potential cooling in consumer confidence and spending in Mexico.
High interest rates and a global economic slowdown are likely to impact these areas.
Despite these challenges, Mexico’s economy grew by 3.1% in 2023, making it the second-largest in Latin America after Brazil.
Looking ahead, the Mexican government projects a growth rate of 2.5% to 3.5% for 2024.
This projection matters as it reflects the resilience of Mexico’s economy despite external pressures.
The industrial growth in 2023 underscores the nation’s potential to navigate through economic uncertainties.
With construction and energy leading the way, Mexico is poised to maintain its momentum, even as it faces possible headwinds in the manufacturing and consumer sectors.