Wednesday, March 29, 2023

Industrial production in Mexico grows 2.8% year-on-year in January

Industrial production in Mexico grew 2.8% year-on-year in January, driven in particular by the generation and supply of energy, the National Institute of Statistics and Geography (Inegi) reported on Monday.

The data was the result of the year-on-year rise, based on original figures, in the generation, transmission and distribution of electricity and water and gas supply (4.5%); manufacturing industries (4.8%), and construction (3%).

In contrast, mining fell 3.5%.

At an annual rate and with seasonally adjusted series, the Monthly Industrial Activity Indicator (IMAI) grew 2.5%, in real terms, last January.

This is due to increases in electricity generation and water and gas supply (4.4%), manufacturing (4.1%) and construction (2.9%), while mining fell 3.9%.

Industrial activity remained unchanged last January compared to December 2022, according to seasonally adjusted figures.

This was the result of monthly increases in the generation of electricity and water and gas supply (0.8%), manufacturing (0.7%) and mining (0.2%) accompanied by a 1% drop in construction .

The figures are a reflection of the behavior of the Mexican economy, which grew 3% annually in 2022, according to the timely estimate released by Inegi last week.

In 2021, industrial production rebounded by 6.5% compared to 2020, when there was a 10% drop due to the covid-19 pandemic, which added to the 1.8% decline in 2019.

Mexico’s gross domestic product (GDP) grew 4.8% in 2021, below government expectations of 6%, after contracting 8.2% in 2020, its worst slump since the Great Depression of 1932.

For this 2023, the Government estimates that the Mexican economy will grow around 3%.


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