Gross Fixed Investment Grew 5.9% at Annual Rate: INEGI
Gross fixed investment grew by 5.9% in real terms at an annual rate and with seasonally adjusted figures during November 2022, reports the National Institute of Statistics and Geography (INEGI). During the month, construction expenses increased 1.4%, while those of machinery and total equipment, both national and imported, fell by 1%. Total equipment and construction grew by 12,2% and 1.6%, respectively.
INEGI explained that the Gross Fixed Capital Formation (GFCF) did not present variations at a monthly rate in real terms, highlighting that residential construction fell by 1.7% and non-residential construction grew 4.3% from November 2021 to November 2022. The areas of national transportation equipment grew by 25.1% and machinery, equipment and other goods by 9.7%, reads INEGI’s report. The performance of national machinery and equipment consolidated a growth of 15.1% in the national gross fixed investment.
From November 2021 to November 2022, the import of machinery, equipment and other goods grew by 8.3%, while the acquisition of national transportation equipment by 23.1%. However, both categories decreased by 3.4% and 4.7%, respectively, between October 2022 and November 2022. Overall, material imports increased by 10.3% year over year and monthly by 3.7%.
Several areas of Mexico’s economy are also reporting a positive start to 2023. The automotive industry, for example, has continued to attract foreign direct investment (FDI) projects. Recently, Ford announced the construction of its Global Technology and Business Center (GTBC) located in the State of Mexico, which represented an investment of US$260 million. Ford argues that this is the largest engineering center in Mexico as it can host up to 9,000 workers.
Volkswagen México also announced a US$763.5 million investment in Puebla, as the company aims to build a new paint shop in the state. Volkswagen highlighted its commitment to the region and explained that the plant is expected to be finished by the end of 2023. The plant will aim to modernize paint application processes and eliminate the need for gas consumption. The objective of the company is to reduce emissions while fully operating with renewable energy, as reported by MBN.