Banxico Presents Regional Economies Report for 4Q22

Banxico presented an in-depth analysis on regional economies for 4Q22 with indicators and an analysis of economic activity, inflation and the perspectives of economic agents in different regions in Mexico. Banxico explained that the report analyzes the economic performance and inflation in all Mexican regions for 4Q22. The analysis also includes perspectives from business executives on regional economic activities and price behavior for the following 12 months. 

The central bank explained that aggregate economic activity grew in 4Q22, while productive activity weakened except for the southern region of Mexico. In the north, productive activity slowed down during 4Q22, although it has maintained high levels. For the south, north center and center regions of Mexico, decreases were registered despite a significant rise in public works and private construction in the north and in the south, said the company in a release.

Commercial activity expanded in the north and south after tumbling in 3Q22, with contractions recorded in the central regions. However, Banxico noted that tourism increased in all regions during the period, as commercial banks expanded at an annual rate in all regions except the center of the country. 

Inflation decreased between 3Q22 and 4Q22 in all regions, a phenomenon attributed to the reduction in non-core inflation. However, the central region registered inferior levels than the rest of the country, mainly due to reductions in annual inflation for agriculture and energy activities.

“Across all regions, the percentage of business executives who anticipate their selling prices to increase at a similar or higher rate increased, similar to those who anticipate that their wage costs would grow at a higher rate. The center region was the exception in both cases. On the other hand, the percentage of managers who expect raw input costs to increase at a similar or greater rate decreased in all regions, except in the south,” explained Banxico.