![]() This has enabled additional power generation for the local grid and is a low-cost fuel for the industrial sector. ![]() Helping drive future growth is the fact that since 2021 Baja California Sur has had access to natural gas through liquefied natural gas (LNG) deliveries in the new regasification terminal at the Port of Pichilingue. For instance, Baja California Sur is projected to have the highest annualized real GDP growth rate (4.07%) during the period 2021-26. Looking forward, S&P Global expects several states to grow quickly from a comparatively low base. Finally, the Northern states had a favorable economic recovery as the manufacturing, construction, and agricultural sectors performed favorably compared to the mining, commerce, and services sectors. In the North-Central states, the manufacturing sector was negatively impacted mainly owing to the automotive industry, as well as lower agricultural production. In addition, in the Central states, the new regulation on labor subcontracting also could have had a negative impact as it is the Mexican region where this type of activity is the most concentrated. At a regional level, in 2021, there was a weakening in the economic recovery of the South and Central states owing to a decline in commerce and tourism activities because of a higher rate of local COVID-19 cases.Īlthough the mining sector recovery was still weak, the construction sector started to recover in the South region states owing to the advancement of government-backed infrastructure projects. For instance, in the third quarter of 2021, the services sector experienced an important contraction because of new regulations on labor subcontracting and weakness in the automotive industry stemming from the sustained shortage of semiconductors. ![]() The recovery in economic activity has also differed by sector. Five of these twelve states (Jalisco, México, Veracruz, Chihuahua, and Guanajuato) have an important weight across primary, secondary, and tertiary economic activities in Mexico. However, when this rebound in growth is disaggregated by region and sector, the resulting opportunities for investors look more uneven.Īccording to 2022 data from Regional Explorer, 12 of 32 states represented just under 70% of Mexico's total real GDP. This trajectory is supported by strong growth in the United States favoring the expansion of some sectors in the short term. S&P Global anticipates growth at 1.87% in 2022. Although Mexico's economy did not grow in the second half of 2022, real GDP rebounded to 5.02% growth in the full year 2021. Mexico's economy has been struggling to grow, with real GDP in 2019 having decreased by 0.19%, before then dropping by 8.37% in 2020 owing to the impact of the coronavirus disease 2019 (COVID-19) pandemic.
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