Mexican Economy Performed Better Than Expected: SHCP

Mexico’s economy performed better than analysts expected and will continue exceeding expectations, with positive indicators in the labor market and a decrease in the inflationary trend, stated the Minister of Finance Rogelio Ramírez de la O.

“Our country is well positioned to take advantage of nearshoring, considering factors such as non-oil exports, mainly manufacturing and automobiles to the US, which maintain a significant recovery, in contrast to the decline registered by those in China," said Ramírez during the Latin American Santander Conference in Cancun, where he presented the government’s vision for 2023.

The US economy continues to show positive signals such as GDP growth, inflationary moderation and positive dynamics within the labor market, said Ramírez. Pressures on supply chains are gradually declining and normalizing, mostly in the industrial business, he added. During his presentation in front of over 600 decision-makers from the region, Ramírez stated that in the current economic context, concerns about risk factors in Mexico have diminished, while investment opportunities continue to grow.

Mexico’s economic growth was favorable during 2022, with 2Q22 being reportedly the most dynamic quarter, showing growth rates of 1.2% and an accumulated growth of about 3% of the GDP. “The economy recovered significantly, with tourism as the main source of income, thanks to an increase of 45% compared with 2021, followed by automotive exports and remittances,” said Ramírez.

Mexico is among the world’s top eight destinations for foreign direct investment (FDI), with US$28 billion investments captured in 1H22. Meanwhile, the Mexican peso registered an annual appreciation of 7.7% as of Jan. 10, which placed the Mexican currency at second place in earnings from December 2021, according to SHCP.

Regarding public investment, Ramírez highlighted several projects linked to regional development, including: the Sonora Plan, which includes solar parks and an industrial hub based on clean energy; the Interoceanic corridor, with 10 new industrial parks; road connectivity and railroad tracks that will connect different hubs of industrial and labor development; and the Mayan Train, which will cover almost 1,500 km in seven sections of railway infrastructure and “will be a key driver of tourism and economic flow in the region.”