The Mexican economy is growing despite a bleak environment of geopolitical conflicts and inflation. The Gross Domestic Product (GDP) of Mexico registered a growth of 3% in 2022 compared to the level reached the previous year, according to figures from the National Institute of Statistics and Geography (Inegi), which indicates a recovery after the global drop in growth due to the covid-19 pandemic since 2020.
By sectors, industrial activities were the ones that grew the most in 2022, with an annual increase of 3.2%, while agricultural work registered a growth of 2.8%. The service sector grew 2.7% last year compared to 2021.
In the last quarter of 2022, GDP registered a growth of 0.44% compared to the third quarter of the same year. In the same period, the GDP of primary activities registered a growth of 2.03%, while industry and services grew 0.36% and 0.16%, respectively.
Last year, inflation was the biggest short-term economic challenge, with the consumer price index averaging a year-on-year growth rate of 7.89%, peaking at 8.7% in August and September. The highest price rise in the last two decades has led the Mexican central bank to raise its interest rates to unprecedented levels to curb inflation. Currently, this reference rate is above 10.5%.
The director of analysis of Banco Base, Gabriela Siller, explains that the impulse of the economic activity came from abroad, from the growth of exports and direct foreign investment, due to the opportunity of nearshoring, as well as the arrival of remittances that supported domestic consumption. Other factors that helped growth were fewer disruptions in supply chains and fewer semiconductor shortages.
The Mexican economy even performed better than its neighboring country to the north. The Gross Domestic Product (GDP) of the United States grew by 2.9% at an annualized rate in 2022. The rise in interest rates in that country has slowed down some sectors (construction and home purchase), but has not caused the dreaded recession that many economists were predicting.
For 2023, market expectations point to a slowdown in growth in Mexico, which would be in a range of 0.3% to 1.8%, according to the most recent Citibanamex survey. The World Bank also has an estimate of 0.9% growth this year; while the International Monetary Fund forecasts an advance of 1.7% for Mexico.
Subscribe here for as low as .08 cents per day to access exclusive content and join the PVDN Newsletter, and browse this site with fewer ads. (Why subscribe?)
Trending news on PVDN
- What is considered lower, middle, and upper class in Mexico? Puerto Vallarta (PVDN) – The issue of what social class one belongs to in Mexico is often a matter of debate among those who discuss it, since there are no established parameters that define the social class in Mexico. Although the National Institute of Statistics and Geography ( INEGI) identified some socioeconomic characteristics of each…
- Condominium development in Puerto Vallarta is destabilizing the hydrological cycle Puerto Vallarta (PVDN) – At a recent conference on “Risks in Water Management and its Influence on the Real Estate sector of the Interstate Metropolitan Area of Puerto Vallarta and Bahía de Banderas,” Dr. Bartolo Cruz Romero, a research professor at the Centro Universitario de la Costa of the University of Guadalajara, emphasized the importance…
- Gentrification of Puerto Vallarta: Causes, Consequences, and Advantages Puerto Vallarta (PVDN) – Puerto Vallarta has been experiencing an increase in prices for rents, food, and other necessities, which could be a symptom of gentrification. For many foreigners and expats in Puerto Vallarta, these increases may seem small and still much cheaper than their home country, but it may be resulting in Mexican locals…
- Majahuitas cove in Puerto Vallarta, one of the most peaceful places in Mexico Puerto Vallarta (PVDN) – Majahuitas is a small, secluded cove located on the southern coast of Puerto Vallarta, Mexico. It is surrounded by lush jungle and pristine beaches that make it a paradise for those seeking an escape from the hustle and bustle of everyday life. In this essay, we will explore the history, culture,…
- Playa Careyes, a foreigner’s paradise for luxurious relaxation south of Puerto Vallarta (VIDEO) Puerto Vallarta (PVDN) – Playa Careyes is a hidden gem on the Pacific coast of Mexico, located in the heart of the Costa Alegre region and 3.5 hours south of Puerto Vallarta. This secluded beach is a favorite among travelers who are looking for a peaceful and relaxing vacation away from the crowds. With its…