Mexico’s government reported that the southeastern states have seen a 6% economic boost, doubling the national average.
This increase stems from a new strategy led by the Ministry of Finance. States like Oaxaca, Veracruz, and Chiapas are part of this initiative.
In a meeting, Deputy Finance Minister Gabriel Yorio revealed that Mexico’s economy is growing at a 3-4% rate.
He expects this trend to continue next year. “Focusing on the southeast has yielded important results,” Yorio noted.
Recent data shows a 6% annual growth for the southeast in the second quarter of 2023.
Notably, Oaxaca has ranked as the second-fastest-growing state in the country since 2020.
Significant public projects contribute to this regional uptick. Examples include the Maya Train and the Olmeca refinery.
Moreover, new airports are in the plans, such as one in Tulum, a popular tourist spot.
“Investments are not just driving national growth; they’re building long-term, productive infrastructure,” Yorio said.
Additionally, Yorio highlighted the “nearshoring” trend, where companies are relocating to Mexico.
The government offers tax perks to encourage this. Collaborations with international organizations aim to train locals for work in various sectors.
Yorio mentioned a $7 million investment from the Inter-American Development Bank (IDB) for technical collaborations.
These funds support projects in health, education, and environment. “Oaxaca and Chiapas received 20% of these funds, equaling $1.3 million,” he concluded.
Background Mexico
This growth in the southeast is a landmark achievement for Mexico, showcasing a successful pivot in economic policy.
Previously overlooked, this region is now a driving force for the entire nation.
The government’s targeted initiatives have effectively harnessed the area’s potential, resulting in a notable 6% growth rate.
This could serve as a blueprint for other countries seeking to uplift neglected regions.
Moreover, the surge in “nearshoring” and foreign investments could make Mexico more competitive globally.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief