The Mexican economy is expected to continue growing in the remainder of 2023, according to estimates by the National Institute of Statistics and Geography (INEGI).
Based on the leading indicator, which suggests economic behavior in the short term, the economy of the Latin American country positioned itself above its long-term trend, presenting a value of 100.4 points and a variation of 0.11 points in July compared to the previous month.
In the second quarter of 2023, the Mexican economy grew 3.6% annually and 0.9% real quarterly, according to the Timely Estimate of Gross Domestic Product (GDP).
“The leading indicator is composed of the trend of employment in manufacturing, the right time to invest in the manufacturing sector, the price and quotation index of the Mexican Stock Exchange in real terms, the bilateral Mexico-US real exchange rate, the equilibrium interbank interest rate, and the Standard & Poor’s 500 index (US stock index),” according to INEGI.
“The economy will continue its growth path, but at a moderate pace,” Mexican newspaper “La Jornada” said.
The National Institute of Statistics and Geography unit also released the monthly indicator of gross fixed capital formation, which represents expenditures on machinery and equipment of domestic and imported origin, as well as construction. The item grew more than 28% in June 2023 compared to the same month last year, reaching a new all-time high.
“In June of this year, at an annual rate and with seasonally adjusted series, gross fixed capital formation grew 28.6% in real terms,” INEGI reported.
The private Grupo Financiero Banco Base commented that, with this advance, “the indicator reaches a new historical maximum and shows an expansion of 13% with respect to the pre-pandemic maximum registered in November 2016.”
Likewise, investment grew by 18.45% in the first six months of 2023 compared to the same period in 2022.
